Texas is sued over anti-ESG law.

A nonprofit group has sued Texas over its 2021 “anti-ESG” law, which restricts state business with companies that “boycott” fossil fuels. The lawsuit, filed in federal court, argues that the law violates free speech rights by discriminating against specific political views. The American Sustainable Business Council claims the law harms its members, who support environmentally-friendly policies. Texas Comptroller Glenn Hegar and Attorney General Ken Paxton, both named in the lawsuit, defend the law as protecting Texas’ economic interests. The law mandates state entities to divest from companies that “boycott” the fossil fuel industry.