November 1, 2023

Texas Comptroller Glenn Hegar Announces Update to List of Financial Companies that Boycott Energy Companies

(AUSTIN) — Texas Comptroller Glenn Hegar announced today he has added five firms to his office's list of companies that boycott the oil and gas industry. Listed companies are subject to the divestment provisions outlined in Texas Government Code Chapter 809, which define a financial company as a publicly traded financial services, banking or investment company.

“I am extremely proud that Texas was the first state to show leadership by shining a bright light and bringing transparency to this absolutely critical issue,” Hegar said. “Texas has been a leader in calling out investment firms that have been playing politics with the retirement money of hard-working Americans. Our goal has always been to bring some honesty to what has really been a one-sided and intellectually dishonest discussion.”

One company was removed from the list. Credit Suisse was merged into UBS Group AG this past summer, and because Credit Suisse is not publicly available, it is no longer listed.

Additionally, the Comptroller’s office continued to review investment funds, which are subject to the same provisions as the companies and identified about 350 investment funds that qualify for divestment. 

“My goal has been to create a more open, honest and transparent conversation,” Hegar said. “I wanted to end the doublespeak by so many companies and show the critical impact that fossil fuels have on our daily lives. Fostering transparent conversation in Texas and throughout our nation ultimately creates a change in behavior by financial institutions.

"We are witnessing tremendous progress. Environmental, Social, and Governance (ESG) funds are experiencing huge outflows and closing faster than they are opening. We are getting real data showing the underperformance of investments that shun fossil fuels. Proxy votes by big fund managers in support of ESG initiatives have dropped precipitously. Even Standard & Poor’s reversed course on highlighting its ESG ratings, yet more work is needed. These are wins that show the impact Texas and other states are having, and I look forward to continuing this work and giving Texans the transparency they deserve on this critical issue.”

The Comptroller's office initially provided the list in August 2022. The agency also updated the answers to frequently asked questions (PDF) regarding the entire listing process and the research conducted by Comptroller's office staff.

State governmental entities subject to the investment prohibitions and divestment requirements in the statute include the Employees Retirement System of Texas, Teacher Retirement System of Texas, Texas Municipal Retirement System, Texas County and District Retirement System, Texas Emergency Services Retirement System and the Texas Permanent School Fund.

On the 30th day after receiving the updated list, a state governmental entity must notify the Comptroller of the listed financial companies in which the entity owns direct or indirect holdings. And not later than Jan. 5 of each year, such entities are required to submit a report to the presiding officer of each house of the Legislature and the attorney general that identifies all securities sold, redeemed, divested or withdrawn in compliance with the Texas Government Code.

The Comptroller’s office continues to review information on an ongoing basis, and the list may be subject to change as often as quarterly. The Comptroller encourages state governmental entities to review the listing criteria to determine whether prospective investments could be subject to listing later, as well as any current business dealings with listed entities in Annex 1.