State Rep. Chip Brown (R-Hollinger's Island) submitted a bill Prohibits the use of environmental, social, and governmental (ESG) criteria when awarding public contracts in Alabama.

Although opposition to ESG practices has gained attention at the public policy level in recent years, the issue is still relatively unknown to the general public.

ESG is standard defined “Environmental standards consider how a company protects the environment, for example corporate policies to address climate change. Social standards consider how companies protect the environment, for example corporate policies to address climate change. Social standards consider how companies protect the environment, for example corporate policies to address climate change. Examine how relationships are managed. Governance deals with corporate leadership, executive compensation, auditing, internal controls, and shareholder rights.”

ESG standards are set by analysts who identify relevant issues facing specific sectors, industries, and companies. However, these factors are often criticized as companies are increasingly being judged on how 'socially conscious' they are.

Related: AG Marshall to Congress: ESG is a 'clear and present danger'

according to HB61“This bill would prohibit the consideration of environmental, social, and governance (ESG) criteria when awarding public contracts and would require, under penalty of perjury, that responsible bidders: Employees will not be subject to individual ESG evaluations as a basis for hiring, firing, or evaluation. ”

Rep. Brown told Yellowhammer News that considering ESG factors “clouds the ability of government agencies” to award work to the best contractors. Because it is “not based on qualifications,” but rather because “the agency considers the views of philosophical and environmental extremists” rather than who can best accomplish the job. ”

Brown said his bill would apply not only to state universities but also state agencies and local governments.

HB61 has been assigned to the House State Government Committee. Brown said he expects it to be on the agenda in the coming weeks.

Alabama Attorney General Steve Marshall also works on ESG at the state and national level. “The ESG lie is coming undone,” Marshall posted on Thursday.

🆕| The lies of ESG are being uncovered. My colleagues and I will continue to lead the fight for businesses and consumers who reject the ideology of the climate change cabal. https://t.co/LVBn2W5UJB

— Attorney General Steve Marshall (@AGSteveMarshall) February 15, 2024

Tuesday marks the seventh day of the 2024 Alabama Regular Legislature.

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