ASBC Sues Texas Over Fossil Fuel Law

The American Sustainable Business Council (ASBC) has sued Texas officials over Senate Bill 13, a 2021 law that restricts state investments in companies perceived to 'boycott' the fossil fuel industry. The lawsuit, filed against Attorney General Ken Paxton and Comptroller Glenn Hegar, argues that the law constitutes viewpoint discrimination and infringes on First and Fourteenth Amendment rights. SB 13 mandates that state entities divest from companies with anti-fossil fuel stances and requires businesses to certify they do not boycott energy companies to qualify for state contracts. The ASBC contends that the law punishes businesses for their environmental, social, and governance (ESG) policies, thus harming its members. This dispute highlights the tension between Texas's pro-oil stance and the growing corporate shift toward sustainable practices.