Texas Defends ‘Sound’ Proxy Advisory Firm Curbs in Federal Court

A Texas law restricting firms giving ESG-related voting guidance to companies’ shareholders is “perfectly valid” and should take effect as scheduled in September, the state maintained as a court considers blocking the statute for now.

SB 2337 likely will survive legal challenges, making a hold on the law targeting environmental, social, and governance investing unwarranted, Texas Attorney General Ken Paxton (R) said in late Friday filings with the US District Court for the Western District of Texas. Texas Gov. Greg Abbott (R) signed the statute into law in June.

Paxton’s filings were the state’s first formal response to July lawsuits ...