Several Anti-Responsible Investing Bills Turn Corporate Accountability Into a Pay to Play Scheme for Millionaires
Austin, TX — The 2025 Texas legislative session saw a massive legislative assault on responsible investing, but of the nearly 20 anti-responsible investing bills introduced across both chambers only three passed. That’s because Unlocking America’s Future fought back against this unprecedented attack, working to defeat dangerous legislation that would have forced investors to ignore risks, undermine corporate accountability, and put the retirement savings of hard-working Texans at risk.
Despite far-right lawmakers’ assault on companies and public entities engaged in responsible investing, most of their dangerous bills died—showing anti-responsible investing legislation fails because it’s fundamentally bad policy and bad politics.
However, several anti-responsible investing bills backed by special interests and big businesses did pass both chambers, giving billionaires like Elon Musk protection from accountability for their companies’ actions and putting at risk Texans’ financial security. The passage of these bills demonstrates that a pack of far-right ideologues are happy to risk the retirement savings of Texans, squash investor freedom, and undermine corporate accountability for the sake of being in billionaires’ back pockets—choosing ideology over sound policy that protects working families.
As companies like BlackRock bow to Republicans’ pressure to back anti-responsible investing policies or walk back responsible investing initiatives, Texas will continue to be a battleground for defending Americans’ freedom to invest.
Dangerous Bills Defeated: Major Victories for Texas Families
Senate Bill 2138: Extended anti-responsible investing restrictions to UT/A&M permanent university funds and other public higher education investments, stripping educational institutions of autonomy to avoid riskier investments.
- Intended impact if bill had passed: Would have forced universities to maintain investments in potentially underperforming assets, threatening financial resources for scholarships, research, and academic programs.
Senate Bill 945: Prohibited shareholder proposals involving insurance limitations for fossil fuel companies, greenhouse gas emission disclosure, or responsible investing considerations.
- Intended impact if bill had passed: Would have undermined shareholder rights and prevented consideration of material climate risks.
Senate Bill 946: Banned lenders from denying loans or credit based on responsible investing risks, forcing financial institutions to ignore known risks when making loans.
- Intended impact if bill had passed: Could have threatened financial stability by forcing institutions to ignore legitimate risk factors.
Senate Bill 495: Prevented the Texas Department of Insurance from adopting rules based on responsible investing models or standards.
- Intended impact if bill had passed: Would have undermined the insurance industry’s ability to properly assess climate and other material risks.
House Bill 872: Shifted the burden of proof to corporations in shareholder lawsuits regarding responsible investing decisions, treating responsible investing as a legal violation.
- Intended impact if bill had passed: Would have suppressed corporate responsible investing practices by dramatically increasing litigation risks.
Common Sense Prevails: Harmful Provisions Stripped from Legislation
House Bill 2067: This represents a significant win for Texas families. By removing the anti-responsible investing language that was present in earlier drafts, the final legislation ensures that insurance companies can continue using proven risk assessment criteria to protect Texans from material financial risks.
Dangerous Bills Passed: Corporate Accountability Turned into a Pay-to-Play Scheme that Harms Texas Families
Senate Bill 1057: This law represents a major victory for corporate interests and a significant blow to shareholder rights. By imposing prohibitive requirements, SB 1057 ensures that only billionaires and large institutional investors can hold corporations accountable through shareholder proposals.
What it does:
- Raises ownership requirements for shareholder proposals at Texas-based companies to at least $1 million in voting securities or three percent of voting stock
- Requires six months of ownership before shareholders can submit proposals
- Effectively silences all but the wealthiest investors
Senate Bill 2337: This legislation undermines informed investment decision-making by preventing proxy advisors from considering all risks that could impact investment returns. The law could harm Texas pension funds and individual investors by forcing advisors to ignore material risks in their recommendations.
What it does:
- Forces proxy advisory firms to make recommendations based solely on “financial interests”
- Prohibits consideration of environmental, social, or governance risks, even when those risks have clear financial implications
- Blocks crucial information on material risks from reaching investors
To speak with a UAF spokesperson about this legislation, please email us at press@unlockingamericasfuture.org.
