A new report from the Texas Association of Business (TAB) and economic consulting firm TXP found Texas anti-ESG laws SB13 and SB19 have cost the state nearly $700 million in lost economic activity. Since the laws went into effect in 2021, Texas public entities have been forced to divest from financial institutions that practice responsible investing, resulting in a loss of over 3,000 full-time, permanent jobs.
Below is a roundup of coverage distilling fresh angles.
InvestmentNews: Even conservative Texas business groups are recognizing the economic consequences of anti-ESG policies.
InvestmentNews ESG Editor Emile Hallez published an article that revealed TAB’s membership includes major players in the oil and gas industry like ExxonMobil – suggesting that Texas businesses interests are coming to terms with the fact that anti-ESG policies are bad for the economy.
Key point: “‘These findings illustrate that when government attempts to mandate values, no matter what kind, to businesses, the market loses,’ the study’s author, economist Jon Hockenyos, said in an announcement of the results.”
To read the full Investment News story, click here.
The Houston Chronicle: The findings of this study should not be surprising to Texas economists and policymakers.
Houston Chronicle Business Reporter Erica Grieder also published a story on the TXP report. The Chronicle has been closely following the economic costs of Texas laws SB13 and SB19, illustrating how across the board, these laws have hurt the Texas economy and created additional financial burden for Texas taxpayers.
Key point: “The new study follows the logic of a 2022 study from the University of Pennsylvania and the Federal Reserve, which examined the interest that Texas cities incurred on about $32 billion in bonds issued during the first eight months after the two laws took effect. That analysis concluded that Texas cities were expected to pay an additional $300 million to $500 million in interest over what they might have incurred in the absence of the law.”
To read the full Houston Chronicle article, click here.
FOX Business: Texas institutions continue to double down on anti-ESG stance.
FOX Business Politics Writer Thomas Catenacci reported that the Texas Permanent School Fund (PSF) announced its termination of an $8.5 billion investment from major multinational investment company BlackRock, because of the firm’s stance on responsible investing.
Key point: “The divestment represents a large share of the $53 billion Texas PSF, a fund created in the 19th century to support the state’s public schools. The action also represents by far the largest divestment of its kind since Republican-led states began terminating their financial ties to BlackRock and other financial institutions over their pursuit of so-called environmental, social and governance (ESG) standards.”
To read the full FOX Business story, click here.
