ESG & Investing

Texas’ ESG Attack Sweeps Up Some Funds That Aren’t Really ESG

Almost 40% of the funds targeted by state comptroller have investments in fossil-fuel stocks.

Pumpjacks operate on oil wells in the Permian Basin in Crane, Texas.

Photographer: Daniel Acker/Bloomberg
Lock
This article is for subscribers only.

A Texas statute targeting perpetrators of “ESG” includes a significant number of investment funds that don’t have a genuine environmental, social or governance focus.

Of the 348 funds singled out by Texas Comptroller Glenn Hegar, 14% don’t qualify as ESG, according to an estimate by Morningstar Inc. What’s more, almost 40% invest in the oil and gas industry they’re accused of boycotting, data compiled by Bloomberg show.