Texas anti-ESG law faces First Amendment challenge

By Lesley Clark | 08/29/2024 01:40 PM EDT

A group that represents progressive companies says the 2021 law discriminates against businesses and costs Texans money.

Ken Paxton is pictured.

Texas Attorney General Ken Paxton (R) is one of the defendants named in a new lawsuit that targets a state law designed to protect the oil and gas industry. Nick Wagner/Austin American-Statesman via AP

This story was updated at 4:05 p.m. EDT.

A network that promotes sustainable businesses is suing Texas, arguing that a state law aimed at protecting the oil and gas industry violates the First Amendment right to free speech.

The American Sustainable Business Council filed suit Thursday in the U.S. District Court for the Western District of Texas, claiming that the 2021 law that bars the state from investing in or contracting with businesses that support a reduction in fossil fuels discriminates against companies that use environmental, social and governance (ESG) metrics.

Advertisement

“The sweep of this provision is contrary to the First Amendment, which protects speech and other expressive activities, even if a government does not like the content of that expression,” says the lawsuit, which names Texas Comptroller Glenn Hegar and Attorney General Ken Paxton (R) as defendants.

GET FULL ACCESS