Texas bans more banks over their ESG policies


As the state workers group in Oklahoma heaped criticism on the State Treasurer this week for banning some banks over their ESG policies, in Texas, five more were added to the list of banned financial institutions for the same reason.

They discriminate against oil and gas companies.

Texas Comptroller Glenn Hegar said they were banned because they “boycott” the oil and gas industry. The action was taken on a 2021 state law, one very similar to Oklahoma’s. The law limits Texas agencies from doing business with financial entities that restrict business deals with oil and gas producers.

The latest to join the divestment list in Texas are AMP Ltd., Credit Agricole SA, Impax Asset Management Group, Rathbone Investment Management and Societe Generale SA. Because they are now on the banned list, state-run agencies or pension funds will have to sell if they have holdings in the companies.

The addition of the 5 financial firms boosted the total list to 15 companies banned from handling any state pensions.

Just like Oklahoma Treasurer Todd Russ is required to update the list, Comptroller Hegar has to do the same thing. But this week, the Oklahoma Public Employees Association attacked Russ over his enforcement of the year-old state law requiring him to review financial firms over their ESG policies.