Prohibits giving preferential treatment or discrimination based upon ESG scores

SB 338 prohibits government entities from favoring or penalizing individuals or organizations based on their ESG (Environmental, Social, Governance) scores in decisions like contract awards or grant allocations. It directly affects government agencies and contractors by banning the use of ESG scores as a factor in public procurement or resource distribution. The law requires decisions to be based on neutral criteria unrelated to ESG ratings, ensuring equal treatment. This creates a clear policy change preventing ESG scores from influencing government actions.