The Senate Committee on State Affairs held a hearing recently in Marshall, Texas, investigating the expansion of the Environmental, Social, and Governance (ESG) movement. Texas is leading the fight to halt ESG practices, a woke investment strategy that places a priority on subjective environmental and social metrics instead of financial metrics that ensure quality returns for investors. It is estimated that ESG has decreased investments in reliable energy (thermal) by 90% over the last five years.
“Your retirement account is collateral damage to radical environmentalists, who are leveraging Wall Street through ‘woke’ ESG investment strategies to kill the oil and gas industry,” Railroad Commissioner Wayne Christian said. “This hearing is extremely important to keep the spotlight on ESG’s fraudulent practices and the Wall Street corporations enabling it. As a 30-year financial services veteran, I’ve seen no greater threat to fiduciary ethics than ESG; and as an energy leader, I’ve also seen no greater threat to the survival of the American way of life which is powered by fossil fuels.”
Chairman Bryan Hughes and members of the Texas Senate Committee on State Affairs continued their investigation of major Wall Street firms to determine whether these firms are using ESG principles that impact state retirement funds, as well as impacting oil and gas production.
“This is an all-hands-on-deck defense against ‘woke’ Wall Street bankers,” continued Christian. “In truth, ESG isn’t noble; it actually stands for ‘Enable Socialist Governance.’ It’s a trojan horse approach to kill capitalism, replace democracies, and take us back to the Dark Ages of energy.”
Since taking office in 2017, Christian has met with dozens of business leaders who have expressed concern that ESG could put an end to the oil and gas industry in Texas. Industry experts pointed to radical environmentalists using hyperbolic examples of flaring as a scapegoat to create ESG, pressure Wall Street, and end fossil fuels. In response, Christian passed an Anti-ESG resolution at the Interstate Oil and Gas Compact Commission (IOGCC) and championed the passage of Texas’ new regulations on ESG last session (Birdwell/King). Since then, several other states (including Florida, Arizona, Missouri, and more) have followed Texas’ lead and fought back against ESG practices regarding state pensions.
Christian also sent a letter and personally met with BlackRock leaders demanding answers to their ESG practices, their impact on oil and gas and potential legal concerns. This letter was shared with the Governor, Lieutenant Governor, and leaders in the Texas Capitol to encourage continued action on halting ESG activities in Texas.
The Commissioner also sent a letter to the Employees Retirement System of Texas (ERS) regarding concerns about ERS’ proxy votes on net-zero financing proposals, and he sent a letter to the U.S. Securities and Exchanges Commission (SEC) vehemently opposing their proposed climate-related disclosure rules for businesses seeking to governmentally standardize ESG investment rules.
Additionally, Texas Comptroller Glenn Hegar released his list of financial companies that boycott energy companies, and Texas Attorney General Ken Paxton has launched investigations into ESG practices over concerns for alleged consumer fraud and unfair trade practices.
For more information, please visit www.rrc.texas.gov.
Source: Railroad Commission of Texas
