“The same day Texas released its version of the index prohibitorum, it emerged that California would ban gasoline-powered cars by 2035. Now one can, of course, say that policy is misguided or too costly; that is a valid debate. But to say that firms lending to or investing in the oil industry shouldn’t factor in the biggest car market in the US — which also sets the regulatory agenda in many other states — banning the biggest source of demand for oil is simply delusional.”
[COMMENTARY]The above quote from the article is telling. It implies that by implementing the state’s new financial guidelines, it’s ‘telling’ the state’s pensions, etc., to not divest assets/stocks that in the future might become stranded assets, thereby harming financial returns. Texas is doing the very thing it says it is trying to guard against!
Texas’ Answer to ‘Woke’ Investing Looks Kind of Woke, by Liam Denning, August 30, 2022, Bloomberg, USA.