A Texas official added HSBC Holdings (HSBA.L) to a list of energy penalties on Monday, expanding a campaign against businesses the state believes are overly focused on the energy transition.
Republican-led states in the United States have claimed that businesses are putting environmental, social, and governance (ESG) policies ahead of their financial obligations to their shareholders.
The action might prevent Texas’ public bodies from making an investment in one of the biggest banks in Europe.
“HSBC’s new energy policy is a prime example of a broader movement in the financial sector to push a social agenda and prioritize political goals over the economic health of their clients,” Texas Comptroller Glenn Hegar said.
A significant divestment by a state hostile to the asset manager’s ESG principles was announced by Florida’s chief financial officer in December, who stated that his department would withdraw $2 billion worth of its assets managed by BlackRock Inc (BLK.N).