Wells Fargo booted from Texas bond deal over ESG policies

Critical Topics in ESG - Harvard Law School Center on the Legal Profession


Just like Oklahoma, Texas has a law banning financial companies from doing business with the state if they discriminate against the oil and gas industry.

Wells Fargo & Co. found it out recently when it was dropped from underwriting a school district bond deal in Texas. It is the latest example of the battle with banks over climate change policies. Wells Fargo was dropped on a $310 million bond deal for the Cypress-Fairbanks Independent School District outside the city of Houston.

The decision also came after state Attorney General Ken Paxton last week put such transactions under review. He said there would be an evaluation whether companies such as Wells Fargo and others can comply with the Republican-backed state law that like Oklahoma, punishes companies with ESG policies that discriminate against the fossil fuel industry.

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