Texas banned local and state government entities from holding stakes in 10 financial companies and nearly 350 investment funds for allegedly boycotting the oil and natural gas industry.


Texas Comptroller Glenn Hegar on Wednesday posted a list of companies and funds that his department determined had shunned oil and gas companies as part of a broader effort to polish their environmental, social and governance (ESG) bona fides. Wall Street firms and global peers are under pressure from investors to demonstrate they are shifting away from fossil fuels and toward renewable energy to help combat change.

The oil and gas industry, as well as several Texas lawmakers, argued that a sudden shift away from fossil fuels is unrealistic and could cause widespread energy shortages. They...