Texas Comptrollerย Glenn Hegarย sent letters to 19 financial firms Wednesday afternoon to determine whether they were violating a new state law that prohibits companies from โboycottingโ fossil fuel companies.
Senate Bill 13, which went into effect in September, prohibits the state from contracting with or investing in companies that divest from oil, natural gas and coal companies. The law defines divestment as refusing to do business with a fossil fuel company because that company does not commit to environmental standards higher than expected by federal and state law.
Firms that received a letter include U.S.-based companies, like JPMorgan Chase & Co. and Wells Fargo & Company, and foreign companies like Jupiter Fund Management PLC and Sumitomo Mitsui Trust Holdings, Inc.
JPMorgan Chase & Co. and Man Group PLC declined to comment for this story. Other companies Hegar contacted โ BlackRock, Inc.; NatWest Group PLC โ did not respond to The Texas Tribuneโs requests for comment.
โOur research thus far shows that some companies are telling us and other energy-producing states one thing, and then turning around and telling their liberal clients in other states another thing,โ Hegar said in aย press release Wednesday. โOn one hand, they push net-zero and other environmental, social and governance (ESG) policies and use their influence and the dollars under their management to limit access to capital for Texas oil and gas firms. Then these same firms tell Texas and other energy states that theyโre committed to the fossil fuel sector.โ
Hegarโs office is working to compile a list of companies that โboycottโ fossil fuel energy. In the letters, his office asks each company whether it has policies on environmental standards that go beyond state and federal requirements and how those are enforced. It also requires the company to list mutual funds or exchange-traded funds that limit or donโt allow investment in fossil fuels.
In the press release, he said his office plans to send more than 100 additional letters.
If the companies do not respond to the comptrollerโs letter within 60 days, they will be presumed to be boycotting fossil fuel companies. Any companies on the comptrollerโs list could see existing contracts with Texas governmental entities canceled and could face Texas pension funds divesting from them.
While manyย companies and governments have attempted to divestย from fossil fuel-based energy in response to theย growing climate crisisย andย effects of fossil fuels on global warming, Texas GOP lawmakers are doing the opposite.
This article was written by EMILY HERNANDEZย of The Texas Tribune.ย The Texas Tribune is a nonpartisan, nonprofit media organization that informs Texans โ and engages with them โ about public policy, politics, government and statewide issues.ย This article originally appeared at: https://www.texastribune.org/2022/03/16/texas-fossil-fuel-divestment-ban-inquiry/