Don't mess with Texas — unless you're the American Sustainable Business Council, that is.
In a recent lawsuit, the eco-conscious business network is taking the Lone Star State to task, reported The New York Times.
The main concern? That current Texas state policies targeting various corporate investments not only "violate … the First Amendment" but also "cost Texans millions of dollars in lost economic activity."
What's happening?
In 2021, Texas lawmakers approved Senate Bill (S.B.) 13. According to the Texas Tribune, this new legislation was the result of an "attempt to protect the state's oil and gas industry from efforts to reduce greenhouse gas emissions."
S.B. 13 moved toward that goal, explained the Times, by instituting a mandatory ban on "state entities from doing business with investment firms … on the basis of their 'actual or perceived' political views on fossil fuels."
A related bill that passed around the same time, House Bill 17, used opposing means toward the same end — restricting state service providers "from banning natural gas as a fuel source," per the Texas Tribune.
The randomness of the "actual or perceived … views" as written in the bill created confusion as two companies, details the Times, "were blacklisted … [without] a clear explanation … or a meaningful process to contest the designation."
Amberjae Freeman, chief executive of Ethos Capital, said in a statement to the Times that the law set a "dangerous precedent for the role of government in business affairs."
All of this legislation seems reactionary, as both publications note. States like California and federal measures such as the Inflation Reduction Act support (and provide incentives for) exploration of more affordable energy sources such as electric vehicles and solar power.
Meanwhile, on the corporate end, E.S.G. investment policies — "making investment decisions that take into account environmental, social and governance issues," said the Times — have grown in popularity.
But many Texas officials don't seem to be embracing it. Regarding the ASBC lawsuit, Texas comptroller Glenn Hegar expressed outrage in the Times at what he feels is "a radical environmental agenda," turning a blind eye to the centrality of oil and gas in the state's economy.
What's the impact of the Texas climate bills?
It's known that burning oil, gas, and coal for fuel releases toxic fumes, raises dangerous air pollution, and further warms our atmosphere. What follows are some pretty scary potential effects, from extreme weather to health problems.
So all that dirty energy production might not be so good for the rest of the world — or even for Texas. Summarizes one Bloomberg story from July 2024: Texas is the American state "most vulnerable to climate-fueled weather disasters and soaring home-insurance costs."
Yet, it's also the state with "aggressive pro-global-warming policies [that] have real teeth and will continue to do harm," added Bloomberg. "Especially to Texas."
But S.B. 13 hasn't exactly equated to sunny skies. In one year, cites the Times, "the laws cost Texas about $668 million" just from the investment restrictions.
Then, reported Bloomberg, there's been "a string of billion-dollar disasters" just in 2024 all associated with rising climate pollution — summer's Category 5 Hurricane Beryl, spring's skyscraper-busting tornadoes and thunderstorms, and winter's wildfires. Fall, just underway, has already brought drought conditions. Residents have experienced extreme temperatures in all seasons.
These events put the lives and safety of Texans at risk, cause enormous damage, and have already resulted in people departing the state.
Environmental concerns can't be contained to a single sector. "The risks imposed by climate change and other so-called E.S.G. risks are fundamental material financial risks that asset managers ignore at their own peril," warned Robert Skinner, a litigation partner at Ropes & Gray, in the Times.
How can the situation in Texas improve?
That famous "Don't mess with Texas" phrase? It came from a 1985 campaign to help the environment by preventing littering.
It shows that state pride and future-focused actions go hand in hand. Despite political pushback, Texan green fuel, agrivoltaic solar, and wind farm projects forge ahead — powering a vision of cheaper energy, a stronger economy, and a healthier, kinder climate.
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