Legislation/Guidance in Effect
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Title |
Key Dates |
Nature of |
ESG Category |
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| SB234: Provides Relative to Prohibition on Certain Governmental Entity Contracts with Companies That Discriminate Against Firearm and Ammunition Industries |
Effective Date 8/1/2024 Adopted Introduced |
Legislation | Target Entities that Boycott Certain Industries |
■ Prohibits Louisiana public entities from entering purchase contracts worth at least $100,000 and paid primarily from public funds unless the provider verifies in writing that it does not discriminate against firearm entities or trade associations and will not do so during the contract term or the provider has fewer than 50 full-time employees or is a sole-source provider. Would take effect August 1, 2024. SUBSEQUENT DEVELOPMENTS According to a report in Bloomberg Law, on August 8, 2024, members of Louisiana's bond commission approved various Wall Street banks as part of a group of managers that the state can hire on debt deals. The underwriting pool lasts until 2027. The officials did so despite misgivings about the banks’ climate change commitments as members of the Net-Zero Banking Alliance. The approval also went through notwithstanding the enactment of SB234, which restricts Louisiana entities from entering into contracts with companies that “discriminate” against firearm entities or trade groups. The legislation is similar to a Texas law that has impacted banks’ public finance businesses in the state. Republican State Treasurer John Fleming said he had concerns about big banks limiting business with firearms entities and Christian organizations; however, he acknowledged that it is difficult to restrict business with the biggest firms. |
| HCR78: Requests that Board of Regents and Public Postsecondary Education Management Boards Report to House and Senate Education Committees and Joint Legislative Committee on the Budget on Actions Related to Environmental, Social, and Governance Criteria |
Effective Date Adopted Introduced |
Request for Action | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics | ■ Requests that the Board of Regents and each public postsecondary education management board to submit a written report reports to the state legislature by Dec. House Committee on Education, the Senate Committee on Education and the Joint Legislative Committee on the Budget no later than December 31, 2024, regarding actions related to ESG criteria that (1) defends the use of ESG criteria in the context of fiduciary duties responsibilities and (2) explains the nature of ESG reporting and the validity and financial efficacy of items scored and reported. |
| HR267: Requests State Retirement Systems to Submit Reports Regarding Procedures for Proxy Voting |
Effective Date Adopted Introduced |
Request for Action | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics | ■ Requests that each state retirement system submit reports at least 60 days before the 2025 and 2026 regular sessions that (1) indicate voting recommendations for the prior year from the retirement system's proxy advisors and (2) specify all votes where the retirement system voted consistent with its proxy advisors and contrary to the vote recommendation of a public company's board of directors on shareholder proposals included in the company's annual proxy statement. |
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Effective date |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■A resolution to urge and request state and statewide retirement system boards of trustees to uphold their fiduciary duty when making financial decisions and to not allow environmental, social, and governance policies to influence their investment decisions. |
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Effective date |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■Urges and requests the U.S. Securities and Exchange Commission (SEC) to immediately withdraw its proposed rule titled, "The Enhancement and Standardization of 9 Climate-Related Disclosures for Investors." |
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Effective date |
Legislation |
Target Entities that Boycott Certain Industries |
■Requests the state treasurer and the state and statewide retirement systems to report on investment advisors and companies used by the treasurer and the retirement systems respectively that discriminate against the fossil fuel industry through environmental, social, and governance policies; on their investment of funds using nonpecuniary factors; and on the asset allocation of all their investments. |
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Prohibit Discrimination on Basis of Social Credit or ESG Scores |
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State Treasurer Letter Divesting All Treasury Funds from BlackRock |
Adopted and in effect |
Enforcement/Divestment |
Target Entities that Boycott Certain Industries |
■The Louisiana State Treasurer announced the state will divest all Treasury funds from BlackRock due to BlackRock’s stance on ESG issues. $560M had been removed to date and a total of $794M was to be removed by the end of 2022. According to the letter sent to the BlackRock CEO, “This divestment is necessary to protect Louisiana from actions and policies that would actively seek to hamstring [Louisiana’s] fossil fuel sector and [BlackRock’s] support of ESG investing is inconsistent with the best economic interests and values of Louisiana ... ESG investing is contrary to Louisiana law on fiduciary duties, which requires a sole focus on financial returns for the beneficiaries of state funds.” |
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Effective date |
Legislation |
Affirmatively Not Restricting ESG |
■Creates the ESG Criteria Study Group to make recommendations regarding regulation of the use of ESG factors in lending and investment. |
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Effective date |
Legislation |
Affirmatively Not Restricting ESG |
■Creates the ESG Task Force to study the use of ESG factors in lending and investment. |
Past/Inactive Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
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| HB909: Higher Education Financial and Planning Transparency Act | Introduced, but did not pass in 2024 legislative session | Legislation | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Requests the Board of Regents and each public postsecondary education management board to receive approval of the Joint Legislative Committee on the Budget before continuing or commencing any activities subject to ESG criteria. ■ Requires approval requests to include (1) detailed information on the nature of ESG criteria reporting and the validity and financial efficacy of items scored and reported and (2) a defense of the use of ESG criteria in the context of fiduciary responsibilities. |
| HB914: Provides Relative to Practices of Financial Institutions to Provide or Deny Services | Introduced, but did not pass in 2024 legislative session | Legislation | Prohibit Discrimination on Basis of Social Credit or ESG Scores |
■ Prohibits financial institutions from discriminating in the provision of financial services based on (1) political speech; (2) religious speech, unless the financial institution claims a religious purpose; (3) any factor that is not a quantitative, impartial and risk-based standard; or (4) any rating or similar metric that considers a person's social credit score based on factors such as political or religious speech; lawful firearm ownership, distribution and use; engagement in fossil fuels, timber, mining, or agriculture; or failure to meet ESG or DEI standards, if the person otherwise complies with applicable law. ■ Requires financial institutions to attest annually as to their compliance with this law. ■ Provides for applicable sanctions and penalties under the Louisiana Banking Law and provides for enforcement of the law under the Unfair Trade Practices and Consumer Protection Act. |
| SB234: Provides Relative to Prohibition on Certain Governmental Entity Contracts with Companies That Discriminate Against Firearm and Ammunition Industries | Introduced, but did not pass in 2024 legislative session | Legislation | Target Entities That Boycott Certain Industries | ■ Prohibits Louisiana public entities from entering purchase contracts worth at least $100,000 and paid primarily from public funds unless the provider verifies in writing that it does not discriminate against firearm entities or trade associations and will not do so during the contract term or the provider has fewer than 50 full-time employees or is a sole-source provider. Would take effect August 1, 2024. |
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SB5: Requires fiduciaries for public retirement systems to make investment decisions based solely on financial factors. |
Introduced, but did not pass in 2024 legislative session |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Requires fiduciaries, boards, and investment managers discharging their duties with respect to public retirement systems to consider only financial factors, which exclude any action taken or factor considered for which evidence indicates the person had a purpose to further the following: (i) mitigating greenhouse gas emissions; (ii) assessing a corporate board or workforce based on criteria incorporating protected characteristics; (iii) restricting the activities of, or investments in or of, any company for failing or not committing to meet environmental standards; (iv) access to abortion or transgender surgery; (v) restricting the activities of, or investments in or of, any company that supports the firearm and ammunitions industry. ■ Allows the attorney general, if there is reasonable cause to believe that a person did or will violate the law, to (1) require the person to file a sworn statement as to the facts and circumstances concerning the violation and (2) request additional data and information. ■ Provides for treble damages for a violation by a company that serves as a fiduciary. ■ Would take effect August 1, 2024. |
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Introduced, but did not pass in 2022 legislative session |
Legislation |
Promote ESG Factors in Investment and/or Proxy Voting Decisions |
■Requests that state and statewide retirement systems invest in companies and work with minority fund managers that practice diversity, equity, and inclusion. |
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Introduced, but did not pass in 2022 legislative session |
Legislation |
Target Entities that Boycott Certain Industries |
■Prohibits Louisiana public entities from entering into a contract with a company for the purchase of goods or services worth at least $100,000 and paid at least partly from public funds unless the company verifies in writing that it does not discriminate against firearm entities or trade associations and will not do so during the contract term. Only applies to companies with at least 10 full-time employees. |
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Introduced, but did not pass in 2022 legislative session |
Legislation |
Target Entities that Boycott Certain Industries |
■Applies to Louisiana state retirement systems. |
