BlackRock exits key climate coalitions and scales back ESG funds, prompting removal from Texas divestment list.
Texas signals victory in anti-ESG push; investment funds targeting fossil fuels drop from 350 to 332.
BlackRock retains $400B in Texas-based investments, strengthening business ties amid regulatory shifts.
Texas Comptroller Glenn Hegar has officially removed BlackRock Inc. from the state’s list of financial companies that “boycott energy companies,” marking a key development in Texas’s ongoing push against ESG-aligned investing.
“This is a meaningful victory and validates the leadership Texas has shown on this issue,” Hegar said. “It’s a monumental shift in the way companies, governments and individual Americans view the energy sector.”
BlackRock’s removal follows a significant retreat from its climate-focused positions. The asset manager exited the Net Zero Asset Managers initiative, reduced participation in Climate Action 100+, and cut back on funds that prohibit oil and gas investments.
“The company 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. In short, it is engaging in a more intellectually honest conversation,” Hegar stated.
Under Texas law (Chapter 809, Government Code), financial companies identified as boycotting energy firms face divestment by state entities unless they reverse course within 90 days. BlackRock was included in the original 2022 list but is now one of only two companies to be removed—Credit Suisse being the other, following its acquisition by UBS.
“Texas has fostered transparency around the economic consequences of decades of misinformation regarding the so-called ‘energy transition,’” said Hegar. “My goal has been to cultivate a more intellectually honest conversation… and I hoped the result would be changes in policy and practice.”
The updated list now includes 15 companies and about 332 individual investment funds, down from 350 in November 2023.
This development comes as major asset managers face pressure from Republican-led states to abandon ESG priorities. Hegar also cited BlackRock’s reduced support for environmental shareholder resolutions and its backing of the upcoming Texas Stock Exchange as further evidence of its policy shift.
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In a statement to ESG Today, BlackRock expressed appreciation for the 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.”
While the move smooths BlackRock’s business operations in Texas, it may also play into its legal defense in an ongoing lawsuit filed by Texas Attorney General Ken Paxton concerning its ESG-related actions.
As the anti-ESG movement accelerates, BlackRock’s realignment may be viewed as a bellwether for other firms navigating the politicized terrain of sustainable investing.
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