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ESG Backlash & DEI

Legal ESG1 MIN READ

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.

Source: Latham & Watkins: Fifth Circuit Grants Stay of Injunction Blocking the Anti-ESG Boycott LawRegulatory Compliancelegal-esgESG Backlash & DEIClimate Risk
Legal ESG1 MIN READ

Federal contractor DEI clauses convert policy disagreement into certification risk

Fenwick’s analysis of the March 2026 executive order says agencies must add a clause prohibiting “racially discriminatory DEI activities,” with flow-down obligations, reporting and records access, possible termination or suspension, and potential False Claims Act theories.

Source: Fenwick: Anti-DEI clause in federal contractingRegulatory Compliancelegal-esgESG Backlash & DEIClimate Risk
Legal ESG1 MIN READ

State AGs are pushing ESG backlash into ratings, antitrust and methodology governance

Simpson Thacher’s May update reports that 23 state attorneys general sent letters to three rating agencies over ESG-related downgrades of fossil-fuel companies, raising antitrust concerns and demanding explanations, withdrawal or disclosure of ESG commitments, methodology changes and conflict disclosures.

Source: Simpson Thacher: Sustainability and ESG Regulatory Update, May 2026Regulatory Compliancelegal-esgESG Backlash & DEIClimate Risk