U.S. Sen. Tom Cotton (R-AR) has joined Texas in decrying companies that boycott the fossil fuel sector through implementation of “Environmental, Social and Governance” (ESG) criteria.
Some companies use ESG criteria “to screen investments based on corporate policies and to encourage companies to act responsibly,” Investopedia said.
“The ESG movement—led by firms like @BlackRock — helped drive energy prices to a record high, enabled Putin and harmed Americans,” Cotton tweeted. “And this collusive behavior is almost certainly illegal. The firms profiting from the ESG scam should tread carefully.”
Cotton, and by extension Arkansas, joins Texas in a focus on ESG policies and how they impact the residents of their state. Texas Comptroller of Public Accounts Glenn Hegar sent letters to nearly 20 companies that might be boycotting the fossil fuel industry, a March 16 news release said. Hegar told them that they may have violated the state's Oil & Gas Protection Act, and he asked them “to clarify their fossil fuel investment policies and procedures” and to present a list of portfolio funds that prevent or restrict investment in fossil fuels.
“These inquiries come as Hegar continues his efforts to implement the provisions of Senate Bill 13,” the news release said. “The bill prohibits Texas state agencies that invest funds from investing in financial companies that boycott energy companies. A company that fails to provide clarification 60 days after receiving this letter will be presumed to be boycotting energy companies.”
The 19 companies that received letters from Hegar, according to the Austin Journal, are “Abrdn, PLC; BlackRock; BNP Paribas; Credit Suisse Group AG; Danske Bank A/S; HSBC Holdings PLC; Invesco, Ltd.; JPMorgan Chase & Co.; Jupiter Fund Management, PLC; Man Group, PLC; NatWest Group, PLC; Nordea Bank Abp; Rathbones Group, PLC; Schroders, PLC; Sumitomo Mitsui Trust Holdings, Inc.; Svenska Handelsbanken AB; Swedbank AB; UBS Group AG and Wells Fargo & Company.”
Texas Lt. Gov. Dan Patrick, a Republican, also criticized ESG, lashing out at BlackRock in particular, the Texas Business Daily reported.
“He proposed that the state disinvest and discontinue doing business with BlackRock, an American international investment management organization, due to their position on energy,” the Texas Business Daily reported, citing a Houston Daily report. “He said, ‘BlackRock is capriciously discriminating against the oil and gas industry by exiting investments solely because companies do not subscribe to a “net zero” policy beyond what is required by law.’”