Last week the American Sustainable Business Council sued to block Texas anti-ESG law SB13, which forces public entities to divest from financial institutions that practice responsible investing. The law is estimated to have cost the state nearly $700 million in lost economic activity and 3,000 lost full-time jobs since it went into effect in 2021. Below is a roundup of what members of the media, public, and business leaders are saying about the new lawsuit.
What They’re Saying
“Banning major financial firms gives local governments fewer choices for bond offerings, loans and other financial services. Larger firms tend to offer better terms … SB 13 is only one example of a nationwide movement to force corporations to do business with fossil fuel companies … Republican politicians say the laws are necessary to stop corporations from folding to left wing pressure and adopting ESG policies. However, financial ratings firms say climate change poses real risks for fossil fuel companies and their investors.” – Chris Tomlinson, Columnist, Houston Chronicle
“The law restricts financial firms from serving state entities, including its retirement systems, if the companies are deemed to be “boycotting” the energy industry. The policy has impacted Wall Street giants including BlackRock, JPMorgan Chase and Goldman Sachs despite their continued investments in oil and gas companies.” – Jordan Wolman, Reporter, Politico
“The laws were part of a backlash in some states against a surge of interest over the past decade in what’s known as E.S.G. investing … A similar anti-E.S.G. law in Oklahoma was successfully challenged in court this year and has been temporarily blocked by a judge.” – Karen Zraick, Reporter, The New York Times
“Since the law’s implementation, state funds such as the Permanent School Fund and Teacher Retirement System of Texas, have unloaded billions of dollars in assets once managed by BlackRock and other companies banned from Texas. That has cost taxpayers about $1.5 billion in unrealized financial gains and increased interest payments on government loans, according to economists at the Perryman Group.” – Philip Jankowski, Reporter, Dallas Morning News
“Laws like SB-13 not only inhibit economic growth and innovation, but also set a dangerous precedent for the role of government in business affairs. Etho Capital believes that responsible investing is not just good for the environment, but also for long-term economic growth. SB-13’s shortsightedness is costing Texans millions and hindering progress towards a more resilient and inclusive economy. It’s time to put an end to this detrimental law.” – Amberjae Freeman, CEO, Etho Capital
“Governor Abbott should have never signed SB-13. The law is bad for Texas businesses and taxpayers, and violates the U.S. Constitution. It is past time for Governor Abbott, Lt Governor Patrick, and their associates in the Texas legislature to prioritize the wellbeing of people in the state. Texas businesses, taxpayers, workers, and public employees will be better off if SB-13 is struck down.” – Skye Perryman, President and CEO, Democracy Forward
“We founded Sphere to help people saving for retirement protect themselves from climate risk. The Texas law is intended to limit our ability to offer investment options, but really harms Texas in the process.” – Alexandra Wright-Gladstein, Founder and CEO, Sphere
“American Sustainable Business Council asked federal judge to overturn Texas law that blacklists companies for fighting climate change by denying them govt contracts, an authoritarian blow against free enterprise, free speech & freedom of conscience” – Anna Núñez on X, former Public Information Officer, Harris County (Texas)
