Texas Bans Barclays From Participating in Bond Market Due to ESG Commitments

By Ben Glickman

Texas officials have banned Barclays from participating in the state's municipal bond market because of concerns about its environmental, social and governance policies.

Texas Attorney General Ken Paxton said Friday that Barclays hadn't responded to requests for information regarding its net zero carbon emissions policies, prompting the ban.

Paxton's office said that Barclays was previously identified as a potential "fossil fuel boycotter" under Texas law. Barclays subsequently opted not to respond to questions about its ESG commitments.

The Attorney General's Public Finance Division ruled that "we will not approve any public security issued on or after today's date in which Barclays purchases or underwrites the public security or is otherwise a party to a covered contract relating to the public security."

The division said it hadn't heard from any of the remaining banks under review that they wouldn't be able to respond to inquiries.

The initial letter from the attorney general's office, sent in November, identified Barclays, Bank of America, J.P. Morgan, Morgan Stanley, Wells Fargo and other large banks as subjects of review.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

January 26, 2024 15:32 ET (20:32 GMT)

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