- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
Cushing Today
By the People, for the People
Texas Judge Strikes Down Law Blacklisting 'Woke' Financial Firms
Ruling could challenge similar anti-ESG laws in other states, analysts say
Feb. 10, 2026 at 8:39am
Got story updates? Submit your updates here. ›
A Texas judge has struck down a state law that blacklisted financial firms, including BlackRock and HSBC, for using environmental, social, and governance (ESG) factors in their investment decisions. The ruling found the law unconstitutional, violating free speech protections. Analysts say the decision provides a "roadmap" for challenging similar anti-ESG laws passed in other states.
Why it matters
The Texas law, and others like it in about 14 other states, were designed to punish investors for considering climate-related financial risks and ESG factors. The ruling could embolden investors to continue managing these risks, which have become increasingly important as natural disasters linked to climate change have caused billions in damages.
The details
The Texas law, known as the Energy Discrimination Elimination Act, required state agencies and local authorities to break ties with and divest from companies that refused to invest in some oil and gas companies. The federal judge ruled the law unconstitutional, saying it violated free speech protections by punishing businesses for speaking about fossil fuels and associating with organizations that oppose them.
- The Texas law was passed in 2021.
- The federal judge struck down the law last week.
The players
BlackRock
A major global investment management corporation that was targeted by the Texas law for its use of ESG factors.
HSBC
A multinational banking and financial services company that was also targeted by the Texas law for its ESG investment practices.
Texas
The state that passed the Energy Discrimination Elimination Act in 2021, blacklisting certain financial firms for their ESG investment practices.
K&L Gates
A law firm whose attorney, Lance Dial, commented that the ruling was a "home-court loss for Texas."
U.S. Sustainable Investment Forum
A sustainable investment advocacy group whose managing director, Bryan McGannon, said the ruling provides a "roadmap" for challenging similar anti-ESG laws in other states.
What they’re saying
“The ruling's challenge to the faulty premise that climate or ESG considerations must be motivated by social or political purposes and ignores 'ordinary business purpose' clears the way to contest many anti-ESG laws.”
— Bryan McGannon, Managing Director, U.S. Sustainable Investment Forum
“It is yet another court ruling protecting the freedom to invest. This should be a strong signal that the overreach of anti-ESG laws has more bark than bite.”
— Frances Sawyer, Founder, Pleiades Strategy
What’s next
Texas has said it will appeal the federal judge's ruling striking down the state's law targeting 'woke' financial firms.
The takeaway
The Texas ruling provides a legal precedent that could embolden investors to continue incorporating climate-related financial risks and ESG factors into their decision-making, despite efforts by some states to restrict such practices through anti-ESG laws.
