State legislatures enacted 14 ESG-related bills during the 2026 legislative sessions, including two that became law after lawmakers overrode gubernatorial vetoes. This was the fewest ESG bills enacted in a single year since 2021. Legislators introduced 174 ESG-related bills this year. Fourteen became law, one was vetoed, eight advanced to a second chamber, 72 are pending, and 79 failed.
State ESG legislation addresses how governments, investors, financial institutions, and corporations consider environmental, social, and corporate governance (ESG) factors. Ballotpedia tracks approaches including public investment and fiduciary standards, restrictions for financial institutions, consumer and investor protections, and corporate disclosure requirements.
States with Republican trifectas enacted 10 of the 14 laws, while states with Democratic trifectas enacted one and states with divided governments enacted three. The enacted legislation addressed several policy areas:
- Tennessee , Oklahoma , Indiana , Kentucky , and Kansas enacted proxy advisor disclosure laws requiring certain disclosures when voting recommendations rely on nonfinancial factors rather than financial analysis.
- Oklahoma, Mississippi, and Tennessee enacted or expanded sole fiduciary standards requiring public pension fiduciaries to base investment and proxy voting decisions only on financial factors.
- Florida and Idaho enacted restrictions on diversity, equity, and inclusion (DEI) programs, while Arizona referred a related constitutional amendment to voters for the 2026 election.
- South Carolina and Utah enacted laws prohibiting certain financial services providers or payment systems from restricting services based on ESG-related criteria.
- Illinois was the only Democratic-trifecta state to enact an ESG-related law, requiring certain insurers to participate in the National Association of Insurance Commissioners' Climate Risk Disclosure Survey.
ESG legislation by trifecta, 2020–2026
State legislatures enacted 155 ESG-related bills across 40 states between 2020 and 2026. States with Republican trifectas enacted 94 of those laws, or 61% of all enacted ESG legislation.
Of the 155 enacted bills, 118 (76%) opposed the use of ESG-related practices, while 37 (24%) supported ESG policies. The types of enacted legislation differed largely along party lines.
Every ESG-related law enacted by states with Republican trifectas opposed ESG practices. The most common policy approaches were:
- Anti-discrimination and anti-ESG-scoring approaches (37 bills): Restricted ESG-based discrimination and the use of social credit scoring by banks and financial institutions.
- Sole fiduciary standards (31 bills): Required public investment decisions to focus only on financial factors.
- Anti-boycott approaches (23 bills): Prohibited certain state investments in or contracts with companies that boycott specified industries.
South Dakota was the only Republican trifecta state that did not enact an ESG law during that period.
Democratic trifecta states enacted 38 ESG-related laws. Thirty-three supported ESG policies, while five opposed them. The most common policy approaches were:
- ESG state contract and licensing requirements (12 bills): Required ESG-related criteria in certain state contracts or licensing decisions.
- Nonfinancial criteria consideration (8 bills): Allowed public fund managers to consider ESG data and other nonfinancial factors in investment decisions.
- Corporate disclosure requirements (6 bills): Required companies to disclose certain ESG-related information, such as emissions or climate-related risks.
States with divided governments enacted 23 ESG laws. Nineteen opposed ESG practices, while four supported them. Sole fiduciary standards were the most common approach, followed by public disclosure requirements and restrictions on ESG-based discrimination.
The data also show how the focus of state ESG legislation has changed over time. Anti-boycott and sole fiduciary legislation peaked in 2023, with 12 and 17 enacted bills, respectively. Anti-discrimination and ESG-scoring legislation increased in the following years, from seven enacted bills in 2023 to 13 in 2024 and 14 in 2025, before falling to five in 2026.
Partisan control and the 2026 elections
The 2026 legislative sessions continued the partisan divide that has characterized state ESG policymaking. Republican-controlled state governments enacted most new laws and generally focused on limiting the use of ESG considerations in public investments, financial services, and corporate governance. Democratic-controlled state governments enacted no legislation supporting ESG policies this year.
The longer-term data show a strong relationship between partisan control of state government and the types of ESG policies states enact. The partisan differences mean control of state government can have significant consequences for the direction of ESG policy.
With governorships and legislative majorities on the ballot this year, changes in trifecta status could alter the direction of ESG legislation in many states beginning with the 2027 legislative sessions.
Ballotpedia tracks support for and opposition to the environmental, social, and corporate governance (ESG) investing movement. To learn more about arguments for, against, and about ESG, click here. For more information on reform proposals related to ESG policy, click here.
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