HB 1507: Arkansas Enacts Loophole to Ban on ESG and DEI Considerations in State Investments
Summary
HB 1507 was enacted in March 2025. It amends a law which prohibits state or public entities from considering environmental, social or governance (ESG) or diversity, equity, and inclusion (DEI) in investment decisions to create an exemption for investments that would "cause a negative financial impact." In effect, this creates a loophole to the anti-ESG and DEI law, a phenomenon known as "greenhushing," (i.e., when companies and other stakeholders playdown their ESG and sustainability efforts).
Impacted Sectors
Additional Information
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