Houston, Tx
Texas warns firms they could lose state contracts for divesting from fossil fuels
A brand new legislation prohibits the state from contracting with or investing in firms that divest from oil, pure fuel and coal firms.
TEXAS, USA — Texas Comptroller Glenn Hegar despatched letters to 19 monetary companies Wednesday afternoon to find out whether or not they had been violating a brand new state legislation that prohibits firms from “boycotting” fossil gas firms.
Senate Invoice 13, which went into impact in September, prohibits the state from contracting with or investing in firms that divest from oil, pure fuel and coal firms. The legislation defines divestment as refusing to do enterprise with a fossil gas firm as a result of that firm doesn’t decide to environmental requirements increased than anticipated by federal and state legislation.
Companies that obtained a letter embrace U.S.-based firms, like JPMorgan Chase & Co. and Wells Fargo & Firm, and international firms like Jupiter Fund Administration PLC and Sumitomo Mitsui Belief Holdings, Inc.
JPMorgan Chase & Co. and Man Group PLC declined to remark for this story. Different firms Hegar contacted — BlackRock, Inc.; NatWest Group PLC — didn’t reply to The Texas Tribune’s requests for remark.
“Our analysis to this point reveals that some firms are telling us and different energy-producing states one factor, after which turning round and telling their liberal shoppers in different states one other factor,” Hegar stated in a press launch Wednesday. “On one hand, they push net-zero and different environmental, social and governance (ESG) insurance policies and use their affect and the {dollars} beneath their administration to restrict entry to capital for Texas oil and fuel companies. Then these identical companies inform Texas and different power states that they’re dedicated to the fossil gas sector.”
Hegar’s workplace is working to compile an inventory of firms that “boycott” fossil gas power. Within the letters, his workplace asks every firm whether or not it has insurance policies on environmental requirements that transcend state and federal necessities and the way these are enforced. It additionally requires the corporate to listing mutual funds or exchange-traded funds that restrict or don’t enable funding in fossil fuels.
Within the press launch, he stated his workplace plans to ship greater than 100 extra letters.
If the businesses don’t reply to the comptroller’s letter inside 60 days, they are going to be presumed to be boycotting fossil gas firms. Any firms on the comptroller’s listing may see present contracts with Texas governmental entities canceled and will face Texas pension funds divesting from them.
This story comes from our KHOU 11 Information companions at The Texas Tribune, a nonprofit, nonpartisan media group that informs Texans – and engages with them – about public coverage, politics, authorities, and statewide points.