Texas Bans Barclays From Local Govt Debt Business Over ESG Concerns

Posted under: MSMEs
Date: 2024-01-30
Texas Bans Barclays From Local Govt Debt Business Over ESG Concerns

Texas Attorney General Ken Paxton has stated that Barclays Bank will not be allowed to underwrite municipal bonds due to its failure to respond to state authorities' questions about its commitment to reducing greenhouse gas emissions. Republican officials have criticized ESG investing and limited other banks' role in local government debt markets. Barclays has been identified as a member or affiliate of a net-zero alliance, a trade group aiming to reduce greenhouse gas emissions. This raises concerns that Barclays may be classified as a 'fossil fuel boycotter' under Texas law. The company has not responded to questions about its ESG commitments and acknowledged that doing so would likely forfeit its ability to contract with Texas governmental entities. Texas has been a leader in a conservative challenge against a Biden administration rule allowing socially conscious investment in employee retirement plans.

Read more at: www.usnews.com