Texas has reached out to 19 financial companies this week to inquire if they “boycott” fossil fuels, a move that comes as Republicans seek to penalize firms seen as discriminatory toward the industry.
The queries, sent Wednesday by state Comptroller Glenn Hegar, come six months after Texas passed legislation that bars it from doing business with banks and financial firms that have divested from energy companies or have otherwise distanced themselves from fossil fuels to prioritize clean energy.
Hegar also requested the companies provide his office with a list of any mutual funds or exchange-traded funds that “prohibit or limit” investment in fossil fuels. Any company that fails to respond or to provide clarification within 60 days “will be presumed to be boycotting energy companies,” his office said in a statement.
“We know some of these companies hold investments in oil and gas today, but what about the future? Are they selling the hope of a ‘green’ tomorrow with promises to divest or reduce their fossil-fuel exposure?” Hegar said. “A handful of companies are echoing promises by the Biden administration about a ‘transition’ to green energy.”
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Texas is one of a handful of red states that have in recent months threatened to cut off companies that divest from fossil fuels. Lawmakers in Kansas, Louisiana, Oklahoma, South Carolina, West Virginia, and Virginia have also proposed similar legislation.
That pressure has forced some firms to walk a delicate line as they seek to balance competing interests, such as climate change-fighting initiatives, with investments in fossil fuels — at risk of facing state penalties.
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While Hegar’s office did not identify the firms it contacted this week, Bloomberg reported that it is planning to mail another round of letters to more than 100 additional companies that appear to have “at least one fund” divesting from fossil fuels.
