State Lawmakers Push Texas-Style Business Penalties Against ESG (1)

Republican lawmakers in several statehouses are pushing to limit access to state contracts and pension funds for businesses with ESG investments and policies, forcing many firms to navigate a changing regulatory landscape.

Bills proposed in roughly a dozen states this year would penalize companies for considering environmental, social, and governance factors—such as climate change or diversity issues—over financial returns. The activity adds to growing backlash against companies with ESG investment policies from doing business in states such as Texas and Florida, where GOP officials have launched high-profile battles against BlackRock Inc. and other asset managers. There are also anti-ESG proposals ...