Bill > SB338

This bill prohibits state entities from using Environmental, Social, and Governance (ESG) scores when procuring contracts or selecting financial institutions, and establishes a process for the state treasurer to create a "restricted financial institutions list" targeting companies engaged in what the bill defines as a "boycott". Specifically, the bill defines a boycott as actions taken against companies involved in fossil fuel, agriculture, timber, or mining industries, or companies that do not meet certain environmental standards beyond existing laws. The state treasurer must create and annually update a list of financial institutions engaging in such boycotts, provide written notice to institutions before inclusion, and may disqualify these institutions from state banking contracts. The bill also allows financial institutions to demonstrate they are not engaged in a boycott to be removed from the list. For state procurement processes, the bill prohibits giving preferential treatment or discriminating against bidders based on their ESG scores, which are defined as evaluations considering factors like fossil fuel engagement, agricultural production, social welfare spending, employee wages, and environmental policies. The bill includes provisions for civil penalties for false information and protects state officials from liability for implementing these requirements.

Business and Industry

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=507