The legislation, however, gives the comptroller the discretion to determine which companies to contact. The law passed in June mandates that the comptroller prepare and maintain a list of the firms.
Failure to do so “will result in the presumption under Texas law that your company is boycotting energy companies,” according to the letter. The comptroller’s letter gives the firms 61 days to respond. Securities and Exchange Commission plan that would require businesses to disclose their greenhouse-gas emissions. and European Union are advocating a net-zero emissions goal for their economies. Texas’s “boycott” initiative comes as the Biden administration along with leaders in the U.K. of its special governing rights in the state after the company criticized a Florida law that limits school instruction about gender identity and sexual orientation, legislation that critics call the “Don’t Say Gay” bill.
Republicans in states including West Virginia and Kansas have introduced legislation similar to that in Texas, which bans government agencies from investing with firms seen as cutting ties with the energy industry.įlorida Governor Ron DeSantis led a move to strip Walt Disney Co. The mounting pressure in Texas reflects a broader effort by Republicans nationwide to scrutinize companies that back policies championed by many Democrats, such as reducing carbon emissions, securing abortion rights or supporting LGBTQ teaching in schools. Firms that end up on the list will face restrictions on doing business in the state, possibly losing out on managing billions of dollars in public-pension assets, for example. His goal: compile a list of companies that, under Texas law, are deemed to be “boycotting” the fossil-fuel industry. Hegar’s salvo follows a first round of inquiries sent last month to 19 companies, including BlackRock Inc.