Texas AG Ken Paxton Sends Warning to Pro-ESG Companies

On Wednesday, Texas Attorney General Ken Paxton (R-Texas) released an advisory providing guidance on how the state will enforce recently-passed laws cracking down on companies that engage in Environmental, Social, and Corporate Governance (ESG) practices.

As reported by the Daily Caller, Paxton’s guidance will encompass numerous other guidelines that the state will use to restrict the state government’s business with certain companies, based on whether or not such companies boycott energy companies, discriminate against firearms manufacturers and distributors, or oppose Israel.

A law was passed recently forbidding the Texas government from entering into a contract with a value of $100,000 or more involving any company that engages in any of these practices. Paxton’s advisory is meant to remind all companies about the parameters of the new law.

“The Office of the Attorney General will continue to vigorously enforce our laws that prevent taxpayer funds from going to companies whose ‘ESG’ policies harm Texans or key Texas industries,” Paxton said in a statement prior to the release of the advisory.

“Companies who discriminate against firearms businesses and organizations, the oil and gas industry, or the nation of Israel will not enjoy the opportunity and privilege of winning public contracts in Texas,” Paxton continued.

Any companies that wish to enter into a contract with the state government must provide a written agreement confirming that they will not promote ESG, boycott energy or firearms, or oppose Israel.

ESG is a relatively new international practice in which companies make investment and hiring decisions based explicitly on whether or not a person or entity is sufficiently supportive of the “green energy” agenda, diversity quotas, and other left-wing initiatives. This has included divesting from oil and other fossil fuel companies, as well as companies specializing in the manufacture and sale of firearms.

In recent weeks, there have been greater calls to crack down on companies that support the anti-Semitic Boycott, Divestment, and Sanctions (BDS) movement, which calls on companies to divest from any manufacturing or distribution efforts connected to the state of Israel, in the wake of a series of massive Palestinian terrorist attacks against Israel.

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About Eric Lendrum

Eric Lendrum graduated from the University of California, Santa Barbara, where he was the Secretary of the College Republicans and the founding chairman of the school’s Young Americans for Freedom chapter. He has interned for Young America’s Foundation, the Heritage Foundation, and the White House, and has worked for numerous campaigns including the 2018 re-election of Congressman Devin Nunes (CA-22). He is currently a co-host of The Right Take podcast.