Texas has become ground zero for attacks on responsible investing, with more than 20 anti-responsible investing bills now filed in the Republican-dominated state legislature for the 2025 session. This assault on responsible investing directly threatens Texas’ economic competitiveness, hurts Texas businesses and families, and forces investors to ignore risks, making Texas families more vulnerable to financial losses.
Unlocking America’s Future has previously worked to hold Texas officials accountable and fight back against the onslaught of anti-responsible investing activity in the state—and this year, we’re working to oppose legislation that could raise costs for taxpayers while hindering economic growth across the state.
Here’s what you need to know about this coordinated legislative attack on Texans’ freedom to invest, including the worst bills moving through the legislature:
Nine Dangerous Anti-Responsible Investing Bills Threatening Texas’ Economic Future
- Senate Bill 312 – Pension Investment restrictions:
- What it does: Forces public retirement systems to ignore responsible investing factors when making investment decisions, even when those factors represent material financial risks.
- Economic impact: Could reduce retirement security for Texas public employees by preventing consideration of known risks.
- Status: Introduced by Senator Hughes, was referred to the Senate State Affairs Committee in February
- Senate Bill 2138 – University Endowment Restrictions:
- What it does: Extends anti-responsible investing restrictions to UT/A&M permanent university funds and other public higher education investments, stripping educational institutions of their autonomy to avoid riskier investments.
- Economic impact: Forces universities to maintain investments in potentially underperforming assets, threatening financial resources for scholarships, research, and academic programs.
- Status: Already passed out of the Senate Education K-16 Committee and advancing rapidly, filed by committee chair Senator Creighton.
- Senate Bill 945 – Shareholder Proposal Restrictions:
- What it does: Prohibits “political shareholder proposals” that involve limiting insurance for fossil fuel companies, promoting greenhouse gas emission disclosure/reduction, or advancing responsible investing.
- Economic impact: Undermines shareholder rights and prevents consideration of material climate risks.
- Status: Introduced by Senator Hughes, was referred to the Senate State Affairs Committee in February
- Senate Bill 1057/House Bill 4115 – Shareholder Disenfranchisement:
- What it does: Drastically raises ownership requirements for shareholder proposals at Texas-based companies to at least $1 million in voting securities or 3% of voting stock.
- Economic impact: Silences all but the wealthiest investors, eliminating a crucial mechanism for holding corporations accountable for financial risks.
- Status: Moving in both the House and the Senate Business & Commerce Committee.
- Senate Bill 946 – Credit Extension Restrictions:
- What it does: Bans lenders from denying loans or credit for anything other than “quantitative, impartial standards,” even when considering legitimate risk factors.
- Economic impact: Forces financial institutions to ignore known risks when making loans, potentially threatening financial stability.
- Status: Introduced by Senator Hughes, was referred to the Senate State Affairs Committee in February
- Senate Bill 495 – Insurance Regulation Restrictions:
- What it does: Prevents the Texas Department of Insurance from adopting rules based on responsible investing models or standards.
- Economic impact: Undermines insurance industry’s ability to properly assess climate and other responsible investing risks.
- Status: Already passed the Senate and is now in the House.
- Senate Bill 949/House Bill 4333 – Financial Institution Discrimination Restrictions:
- What it does: Creates civil liability for financial institutions that consider “social credit scores” in their decisions, which includes refusing services based on a customer’s stance on greenhouse gas emissions, diversity practices, fossil fuel business associations, or religious values.
- Economic impact: Forces banks and other financial institutions to ignore material risks in their operations, exposing them to potential financial losses while creating new legal liabilities.
- Status: Moving in both the House and the Senate Business & Commerce Committee.
- Senate Bill 2337/House Bill 4079 – Proxy Advisor Restrictions:
- What it does: Forces proxy advisory firms to make recommendations based solely on “financial interests” while prohibiting consideration of environmental, social, or governance risks, even when those risks have clear financial implications.
- Economic impact: Blocks crucial information on material risks from reaching investors, undermining informed decision-making that could protect retirement savings and investments.
- Status: Filed by Senator Hughes and referred to Senate State Affairs Committee
- House Bill 872 – Treating Responsible Investing as a Legal Violation and Shifting Litigation Burden from Plaintiffs to Companies:
- What it does: Shifts the burden of proof to corporations in shareholder lawsuits regarding responsible investing decisions, forcing companies to defend their consideration of long-term environmental and social risks. Implies that responsible investing is a legal violation triggering liability.
- Economic impact: Suppresses corporate responsible investing practices by dramatically increasing litigation risks for companies that consider long-term sustainability factors.
- Status: Referred to House Judiciary & Civil Jurisprudence Committee.
How These Anti-Responsible Investing Bills Would Harm Texas’ Economy
These bills represent political interference in sound business and investment practices. By targeting responsible investing in Texas they would:
- Force investment managers to ignore material financial risks
- Potentially reduce returns on state pension funds
- Create regulatory confusion for Texas businesses
- Limit access to capital for companies addressing climate challenges
- Disadvantage Texas in competing for future-focused industries and jobs
Why Responsible Investing Matters for Texas’ Economy:
- Lower Costs for Families: Responsible investments often prioritize long-term sustainability that reduces costs over time, from energy-efficient infrastructure to climate-resilient development.
- Increased Competitiveness: Many companies headquartered or operating in Texas already incorporate responsible investing factors to remain competitive globally and attract investment capital.
- Job Creation: The transition to sustainable technologies creates new, high-paying jobs in renewable energy, water conservation, and other future-focused industries critical to Texas’s growth.
- Risk Management: Considering environmental and social risks helps protect Texans’ retirement savings and the state’s investments.
Responsible investing isn’t about politics—it’s about smart economics. By considering all risks that affect long-term value, responsible investing approaches help create sustainable growth, good-paying jobs, and a more resilient Texas economy.
