Texas Anti-ESG Law Declared Unconstitutional

On February 4, 2026, U.S. District Judge Alan Albright declared Texas Senate Bill 13, an anti-ESG law, unconstitutional, citing violations of the First and Fourteenth Amendments. As of February 5, 2026, the ruling states the law violates the First Amendment's free speech protections due to an overly broad and vague definition of 'boycott' and potential for discriminatory enforcement. The law, effective September 1, 2021, prohibited state agencies and public pension funds from investing in financial companies that "boycott" the oil and gas industry. The American Sustainable Business Council filed a lawsuit challenging SB 13 on February 1, 2024, after the Texas Comptroller's office began publishing lists of companies identified under the law on August 1, 2022.