Texas anti-ESG law SB 13 and the states' suit against BlackRock, Vanguard and State Street
- The record does not name which of my species, waters, soils or forests were harmed.
In 2021 Texas passed SB 13, which blacklists financial institutions that boycott fossil-fuel companies. In November 2024 Texas and other states sued BlackRock, Vanguard and State Street, alleging they coordinated through climate initiatives to curb coal production; Vanguard settled in February 2026 for $29.5 million without admitting wrongdoing.
Paid in February 2026 without admission of wrongdoing; the research file says the allegations were unproven.
Status As of October 2026: Vanguard settled the states' coal antitrust suit in February 2026 for $29.5 million; the suit against BlackRock and State Street was listed as ongoing; SB 13 was found unconstitutional on 4 February 2026, and an objection to that ruling was listed as ongoing.
- BlackRock — Removed from the Texas list on 3 June 2025 after leaving the climate initiatives. Texas Tribune
- Vanguard — Paid $29.5 million in settlement without admitting wrongdoing. ESG Dive
- BlackRock — Lost management of $8.5 billion of Texas school-fund assets in March 2024. Ballotpedia News
- Texas municipalities — Estimated at $303–532 million of extra interest in eight months (Garrett and Ivanov; disputed).
What happened
In 2021 Texas enacted SB 13, which blacklists financial institutions that 'boycott' fossil-fuel companies. Laws that took effect in September 2021 barred banks that restricted the fossil-fuel and firearms industries from acting as municipal bond underwriters. The claim that the model text for the law came from the American Legislative Exchange Council (ALEC) is described in the sources reviewed as disputed. Backers presented the campaign as a defence of energy workers and retirees' money against 'woke capitalism'.
In 2022 Garrett and Ivanov estimated that Texas municipalities would pay $303–532 million in extra interest on $32 billion of bonds issued in the first eight months of the laws, after five banks holding about 35% of the market withdrew. Authors aligned with the industry dispute the calculation. In August 2022, after a July ALEC meeting, 19 state attorneys general wrote to BlackRock; in 2023, 165 anti-ESG bills were introduced in 37 states.
In February 2024 JPMorgan Asset Management, State Street and PIMCO left the investor initiative Climate Action 100+, and BlackRock moved its membership to its international unit. On 19 March 2024 the Texas Permanent School Fund withdrew $8.5 billion from BlackRock. In November 2024 Texas and other states sued BlackRock, Vanguard and State Street, alleging that the three firms cooperated through climate initiatives to curb coal production.
Between December 2024 and January 2025 six large US banks left the Net Zero Banking Alliance and BlackRock left the Net Zero Asset Managers initiative, which was suspended. On 3 June 2025 Texas removed BlackRock from its list after it had left the climate initiatives. In August 2025 Judge Kernodle allowed most of the states' case to continue and noted that there was no direct evidence of a conspiracy.
On 4 February 2026 Judge Albright found SB 13 unconstitutional. In February 2026 Vanguard paid $29.5 million without admitting wrongdoing and committed to remain passive, leaving the suit. The Net Zero Asset Managers initiative relaunched, without an explicit reference to 2050, and its US member count fell from 44 to 12. The suit continued against BlackRock and State Street, and an objection to the SB 13 ruling was listed as ongoing in the sources reviewed.
- 2021Texas enacts SB 13; laws barring restricted banks from municipal bond underwriting take effect in September
- 2022Garrett and Ivanov estimate $303–532 million of extra interest on Texas municipal bonds in eight months; July ALEC meeting; August letter from 19 attorneys general to BlackRock
- 2023165 anti-ESG bills introduced in 37 states
- 2024Feb: JPMorgan AM, State Street and PIMCO leave Climate Action 100+. 19 Mar: Texas school fund withdraws $8.5 billion from BlackRock. Nov: Texas and other states sue BlackRock, Vanguard and State Street.
- 2025Jan: BlackRock leaves Net Zero Asset Managers. 3 Jun: BlackRock removed from the Texas list. Aug: judge lets most of the antitrust case proceed. 3 Oct: Net Zero Banking Alliance closes. 30 Oct: NZAM announces relaunch without the 2050 requirement.
- 20264 Feb: SB 13 found unconstitutional. Feb: Vanguard pays $29.5 million and leaves the suit; NZAM returns with 253 signatories.
What was said
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Alleged the three firms cooperated through climate initiatives to curb coal production.
ESG TodayAllowed most of the case to proceed and noted there was no direct evidence of a conspiracy.
ESG DiveSettled in February 2026 for $29.5 million without admitting wrongdoing.
ESG DiveNo statement in the source sources reviewed.
Estimated $303–532 million in extra interest on $32 billion of bonds in the first eight months, after five banks holding about 35% of the market withdrew.
Dispute this calculation.
How it looked
Shown
- The campaign was presented as a defence of the energy worker and the retiree's money against 'woke capitalism'.Campaign backers, as described in the sources reviewed
Recorded
- Texas withdrew $8.5 billion in school-fund assets from BlackRock on 19 March 2024.
- BlackRock was removed from Texas's list on 3 June 2025 after it left the climate initiatives.
- Texas and other states' suit against BlackRock, Vanguard and State Street survived a motion to dismiss in August 2025; the judge noted there was no direct evidence of a conspiracy.
- Vanguard settled in February 2026 for $29.5 million without admitting wrongdoing and committed to remain passive.
- BlackRock's support for environmental and social shareholder proposals fell from 47% in 2021 to 4% in 2024 and to about 1% in 2025 (3 of 352 proposals); Vanguard's support was 0% in three consecutive proxy seasons (2023–24, 2024–25, 2025–26).
- Consumers' Research, a face of the campaign, received about $10 million in grants from the Marble Freedom Trust in 2021–23.
- In 2025, 106 anti-ESG bills were introduced and 11 became law; since 2021, 52 laws and resolutions have passed in 21 states.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- vanguard (2026-02): Settled the states' antitrust suit for $29.5 million without admitting wrongdoing and committed to remain passive. · ESG Dive
- blackrock (2025-01): Left the Net Zero Asset Managers initiative in January 2025 and moved its Climate Action 100+ membership to its international unit in February 2024; the sources reviewed give no statement by BlackRock on the suit.
- texas-gov (2025-06-03): Removed BlackRock from its list on 3 June 2025 after BlackRock left the climate initiatives; the state's school fund withdrew $8.5 billion from BlackRock on 19 March 2024. · Texas Tribune
In court and with insurers
Lawsuits and rulings
- 2024-11–OngoingTexas and other states v. BlackRock, Inc., Vanguard and State Street (coal antitrust suit)US court in Texas (Judge Kernodle) · Civil · Texas and 12 other states → BlackRock, Vanguard, State Street
The states allege the three firms cooperated through climate initiatives to curb coal production. In August 2025 the judge denied most of the motion to dismiss and noted there was no direct evidence of a conspiracy. ESG Today
- 2024-11–2026-02Settled$29500bn Paid by Vanguard without admission of wrongdoingVanguard settlement in the states' coal antitrust suitUS court in Texas · Civil · Texas and 12 other states → Vanguard
Vanguard paid $29.5 million without admitting wrongdoing and committed to remain passive. ESG Dive
- 2026-02-04Claimant wonChallenge to Texas SB 13Court identified only as Judge Albright's in the sources reviewed · Civil · → State of Texas (SB 13)
Judge Albright found SB 13 unconstitutional on 4 February 2026. An objection to the ruling was listed as ongoing.
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Accounts
- Disputed Did BlackRock, Vanguard and State Street coordinate through climate initiatives to curb coal production?
- Disputed What did the Texas bond-underwriting restrictions cost municipalities?
- None on record State Street: No statement in the source sources reviewed.
Record
- None on record The states' coordination allegations were not tested at trial; the judge noted no direct evidence of conspiracy in August 2025, and the research file describes the allegations as unproven.
- Unclear Whether the model text for SB 13 originated with ALEC is described as disputed.
- Disputed The Garrett and Ivanov estimate of extra municipal interest is disputed by industry-aligned authors.
Did the harm stop?
No ecological harm is recorded in the sources reviewed for this case.
Who paid?
Vanguard paid $29.5 million in settlement. Texas municipalities were estimated to pay $303–532 million in extra interest in the first eight months (Garrett and Ivanov; disputed). Texas's school fund moved $8.5 billion out of BlackRock.
Sources
Courts
- Texas v. BlackRock, Inc. (case documents)Climate Case Chart ·
Press and investigations
- Texas education fund pulls $8.5 billion from BlackRockBallotpedia News · 2024-03-28
- Texas comptroller, BlackRock and the energy boycott listTexas Tribune · 2025-06-03
- Vanguard settles 13-state ESG antitrust suitKelley Drye, Ad Law Access · 2026-02
- NGO study identifies Vanguard and BlackRock as big climate-change villainsai-CIO · 2023-04-25
Connected cases
- Leonard Leo network and the anti-ESG campaign United States · 2020–2026 Related matter
- Study estimates Texas anti-ESG bank rules added to municipal borrowing costs United States · 2021–2022 Related matter
- State of Texas (Government) — here: Legislator, lead plaintiff state and list maintainer; there: Government that enacted the anti-ESG boycott law
- Lake Turkana Wind Power and the Marsabit-Suswa transmission line delay Kenya · 2006
- BlackRock (Asset manager) — here: Defendant; removed from the Texas list in June 2025; there: Manager of the Climate Finance Partnership fund that bought the stakes
- Mercer fined A$11.3m over 'sustainable' fund; Vanguard and Active Super also penalised Australia · 2024–2025
- Vanguard (Asset manager) — here: Defendant; settled for $29.5 million; there: Penalised over the 'ethical' fund
- Occidental Stratos direct air capture plant (Texas) United States · 2023–2026
- BlackRock (Asset manager) — here: Defendant; removed from the Texas list in June 2025; there: Investor ($550 million)
- Verra suspends three REDD+ schemes in Brazil's Portel over public land overlap Brazil · 2023–2025
- BlackRock (Asset manager) — here: Defendant; removed from the Texas list in June 2025; there: Company that used Pacajaí credits in emissions reports