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illuminem summarizes for you the essential news of the day. Read the full piece on Financial Post or enjoy below:
🗞️ Driving the news: The American Sustainable Business Council has filed a lawsuit against Texas officials, challenging a state law that restricts investments with financial firms based on their energy policies
• The lawsuit claims the 2021 law is unconstitutional, accusing it of targeting businesses that seek to reduce reliance on fossil fuels
• Texas Comptroller Glenn Hegar and Attorney General Ken Paxton are named in the suit, with Hegar dismissing the lawsuit as “frivolous”
🔭 The context: Senate Bill 13, enacted in Texas, mandates the creation of a list of companies that allegedly boycott the oil and gas industry, restricting state investments in these firms
• Critics argue this law infringes on free speech and penalizes companies for their environmental stances
• Similar anti-ESG laws have faced legal challenges in other states, including Oklahoma and Missouri, where judges have blocked enforcement
🌍 Why it matters for the planet: This legal battle highlights the ongoing clash between pro- and anti-ESG policies in the United States, impacting how states invest public funds and the ability of sustainable businesses to compete
• The outcome could shape the future of sustainable finance and influence other states considering similar measures
⏭️ What's next: As the lawsuit progresses, it may prompt further scrutiny of anti-ESG laws and potentially lead to changes in how states regulate investment based on environmental criteria
• A ruling against Texas could encourage more legal challenges against similar laws nationwide
💬 One quote: “This law is anti-business plain and simple,” said Skye Perryman, CEO of Democracy Forward, representing plaintiffs challenging the legislation
📈 One stat: The Texas Permanent School Fund announced earlier this year it would divest $8.5 billion from BlackRock Inc., listed as an offender under the law
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