Title	Key Dates	Nature of Action	ESG Category	Summary
SB261: Relating to Public Contracts	Effective date 10/1/2023 Adopted 6/6/2023 Introduced 4/27/2023	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Prohibits a governmental entity from entering into a public contract for goods or services with companies that boycott fossil fuel, timber, mining, agriculture, and firearm industries or based on certain ESG standards. ■ Prohibits any company in Alabama from being required to engage in, or being penalized for not being engaged in economic boycotts or other actions that further social, political, or ideological interests. ■ Authorizes the Attorney General to seek to prohibit the adoption of federal laws or actions that may penalize or limit the activities of Alabama companies or residents based on the furtherance of economic boycott criteria. SUBSEQUENT DEVELOPMENTS In May 2023, the State Auditor showed support for SB261 and claimed that "People don’t want" ESG investing.
SB261: Relating to Public Contracts		Legislation	Target Entities That Boycott Certain Industries
Alabama AG Marshall Expects the Metric to Continue to Crumble	Adopted and in effect 8/10/2023	Attorney General Position	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	“The ESG virtue-signaling racket will continue to crumble, as it rejects free-market principles in favor of woke capitalism and the consolidation of economic power into fewer and fewer hands,” Alabama Attorney General Steve Marshall told 1819 News when asked about the S&P Global news (they'll no longer publish new ESG credit indicators in their reports or update outstanding ESG credit indicators).
Attorney General Testified at the US House Oversight Committee's ESG Hearing	Adopted and in effect 5/10/2023	Attorney General Position	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ On May 10, 2023, Alabama Attorney General Steven Marshall testified at the US House Oversight Committee's ESG hearing, alleging that the ESG policies promoted by "global elites" hurt the consumers and State AGs should protect consumers from ESG. SUBSEQUENT DEVELOPMENTS On May 23, 2023, Marshall published an op-ed in Wall Street Journal further elaborating on the Utah Attorney General's and his anti-ESG stance expressed in the hearing.
AG Marshall: Left using ESG to 'inject issues and create change that they can't get at the ballot box, particularly in a state like Alabama'	Adopted and in effect 3/19/2023	Attorney General Position	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Alabama State Attorney General Steve Marshall stated in an interview that Alabama was not able to acquire all of the financing they needed for a bond to build new prisons due to ESG-related impacts on Alabama's credit rating. He also stated that he is working to make sure that investment advisers are not able to invest in ESG investments when they may not have the best return.
	Adopted and in effect 3/19/2023	Attorney General Position	Prohibit Discrimination on Basis of Social Credit or ESG Scores
State Treasurer Boozer, Retirement Systems of Alabama Deny using ESG criteria for Investments	Adopted and in effect 10/17/2022	Treasurer Position	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Local news reported that Alabama State Treasurer Young Boozer insists that the State Treasury does not make investment decisions using ESG criteria.

Title	Key Dates	Nature of Action	ESG Category	Summary
HB61: Public Contracts; ESG Criteria Prohibited in Public Contract.	Introduced, but did not pass in the 2024 legislative session	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Pre-filed bill that is set to become effective January 1, 2025 if enacted. ■Prohibits a state or local governmental agency or other public awarding authority from considering ESG criteria or an ESG rating when awarding a public contract (valued at $100,000 or more). An "ESG Rating" is defined as a measurement of an individual's ESG criteria based on an assessment of their quality, standard, or performance. ■ Before a public awarding authority may award a contract, the bill requires a bidder to certify that its employees will not be subject to a Personal ESG Rating as a basis of hiring, firing, or evaluation. "Personal ESG Rating" is defined as any measurement of an individual's personal lifestyle choices, including, but not limited to, any of the following criteria: (a) Dietary choices, (b) Sustainable energy usage, (c) Transportation habits, (d) Environmental impact, (e) Ethical or sustainable purchasing choices, (f) Recycling habits, (g) Carbon footprint, or (h) Personal contributions to social justice issues.
			Prohibit Discrimination on Basis of Social Credit or ESG Scores
SB151: State Investments and Public Contracts	Introduced, but did not pass the 2024 legislative session	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Set to become effective October 1, 2024, if enacted. ■ Requires the Board of Control of the Teachers' Retirement Systems of Alabama and the Board of Control of the Retirement Systems of Alabama (together, the Boards) to discharge their duties solely in the interest of, and for the exclusive purpose of providing benefits to, their members and beneficiaries. The Boards may consider, as a secondary factor, the impact of an investment on the well-being of the State of Alabama but may not subordinate the interests of their members and beneficiaries and may not sacrifice investment returns or take an additional investment risk to promote any other non-pecuniary factors. ■ A "pecuniary factor" is a factor that the Boards prudently determine is expected to have a material effect on the risk or returns of an investment based on appropriate investment horizons consistent with applicable investment objectives and funding policy. The term does include the furtherance of any "environmental", "social", or "governance" agenda. SUBSEQUENT DEVELOPMENTS On May 7, 2024, the Senate said it would indefinitely postpone consideration of the legislation (therefore, it is likely dead, since Alabama does not have carryover)
HB188: Relating to Public Contracts	Introduced, but did not pass in the 2023 legislative session	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Prohibits the consideration of ESG criteria or an ESG rating when awarding a public contract. Requires a responsible bidder, as a condition of being awarded a public contract, to certify that its employees will not be subject to a personal ESG rating as a basis of hiring, firing, or evaluation. SUBSEQUENT DEVELOPMENTS Bill was "indefinitely postponed" on 5/31/23 in the House. Legislative session ended on 6/14/23.
			Prohibit Discrimination on Basis of Social Credit or ESG Scores

Legislation/Guidance in Effect

Past/Inactive Legislation

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