On Tuesday, Texas removed BlackRock (NYSE: BLK) from its list of companies viewed as boycotting the energy industry, following significant scaling back of the asset manager’s climate ambitions.
Texas Comptroller Glenn Hegar cited BlackRock’s withdrawal from climate-related industry groups such as the Net Zero Asset Managers initiative, along with its reduced support for shareholder environmental resolutions, as key factors behind the decision. He also noted BlackRock’s backing of a new Texas Stock Exchange as a positive step.
Hegar stated, “BlackRock has acknowledged the real social and economic costs, both here in Texas and globally, that come from limiting investment in the oil and gas industry.”
Impact of Removal
The removal from the boycott list will facilitate easier business dealings between Texas state agencies and BlackRock. It may also strengthen BlackRock’s position in a lawsuit filed by Texas Attorney General Ken Paxton regarding the firm’s environmental policies.
BlackRock responded, “We appreciate Comptroller Hegar’s decision. BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure, and other private assets throughout the state. These investments support the continued growth of the Texas economy.”
Background
BlackRock and several European asset managers were added to the boycott list in 2022 under a Texas law passed the previous year. The legislation responded to Wall Street’s then-increasing focus on environmental, social, and governance (ESG) priorities, particularly those perceived as limiting investment in traditional energy sectors.
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