Fifth Circuit stay lets Texas resume anti-ESG boycott-law enforcement during appeal

Latham reports that the Fifth Circuit granted a stay of the preliminary injunction blocking Texas SB 13, which restricts certain public investments and contracts with financial institutions deemed to boycott energy companies. The stay does not resolve the merits, but it allows Texas to proceed with enforcement while the appeal continues. The anti-ESG divide is now a live contracting and certification issue for financial institutions with public-sector business. Law firms should help clients review investment policies, vendor certifications and state-by-state exposure without assuming federal litigation will freeze enforcement.