BlackRock has been removed from a list of companies published by Texas subject to divestment for “boycotting energy companies,” after the asset management giant exited climate-focused investment groups and updated its energy investment policies, according to a statement released by Texas Comptroller Glenn Hegar.
The development of the list in 2022 formed part of an anti-ESG movement in Republican states, which has gained further momentum since the election of President Trump, with Texas consistently at the forefront. Texas is the largest net energy supplier in the U.S., providing nearly a quarter of the country’s domestically produced energy, and accounting for over 40% of the nation’s crude oil proved reserves and production, according to the U.S. Energy Information Administration (EIA).
Under Texas law, the Comptroller is required to maintain and update a “list of financial companies that boy energy companies,” with the law giving companies given 90 days to “cease boycotting energy companies in order to avoid qualifying for divestment by state governmental entities.”
BlackRock was one of the investment companies first included on the list when it was launched by the Comptroller’s office in 2022. While Hegar welcomed changes made by BlackRock that led to its removal from the list and noted that “it took the company longer than others in the financial sector to make the shift,” each of the other investment companies included on the initial 2022 list remain on the updated list, expect for Credit Suisse, which has been acquired by UBS – which is also on the updated list.
In a statement announcing the removal of BlackRock from the list, Hegar said:
“This is a meaningful victory and validates the leadership Texas has shown on this issue, which has seen a monumental shift in the way companies, governments and individual Americans view the energy sector.”
The Comptroller’s office listed a series of moves by BlackRock that led to its removal from the list, including the investment manager’s decision to exit the Net Zero Asset Managers (NZAM) initiative and to reduce its participation in Climate Action 100+, as well as reducing the number of fund offerings that prohibit investment in oil and gas. Hegar added that BlackRock “shifted away from blanket policies that ignore the critical need for fossil fuel-based energy generation now and long into the future.”
15 companies remain on the Comptroller’s list, including AMP, BNP Paribas, Credit Agricole, Danske Bank, HSBC, Impax Asset Management, Jupiter Fund Management, NatWest, Nordea Bank, Rathbones, Schroders, Societe Generale, Svenska Handelsbanken, Swedbank and UBS, in addition to hundreds of individual funds.
In a statement provided to ESG Today, a BlackRock spokesperson said:
“We appreciate the Comptroller’s resolution of this matter. 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.”
