A vibrant business landscape and thriving economy is only viable long-term if it prioritizes sustainability and justice-informed access to resources, capital, and opportunity for all. Assessing resource depletion and environmental impacts (“E”), analyzing social effects – like worker treatment, diversity, consumer safety, and community impacts (“S”), and adopting corporate governance that supports positive outcomes (“G”) are common-sense considerations for responsible business and investing practices and decisions.
Unfortunately, the term ‘ESG’ has been highly politicized and faces intense scrutiny and backlash from powerful institutions that stand to lose investments and power as the momentum towards considering critical factors beyond short-term profits alone continues to grow. The bottom line: Businesses and investors should have the freedom to consider ESG and other risk factors when making their decisions.
On August 29, 2024, the American Sustainable Business Council (ASBC), ASBN’s affiliates, acting on behalf of members including Etho Capital and Sphere, sued Texas for violating the free speech and association rights protected under the First and Fourteenth Amendments of the United States Constitution through the implementation of SB-13—a law that penalizes private companies that choose not to make risky investments in fossil fuel companies.
The law has both a negative impact on businesses that use ESG metrics and on everyday Texans. The lawsuit highlights the substantial financial harm SB-13 has had on Texas taxpayers, workers, business owners, and pensioners.
Join ASBN and be part of a powerful network of businesses using their voice to shape policies for a just and regenerative economy. Together, we drive bold solutions that put people and the planet first—because better business creates a better world.
Anayana White, our Head of Communications, can help direct you to the right source.
