Texas Comptroller Removes BlackRock from Divestment List Amid Strategic Shifts
In a significant development, the Texas Comptroller’s office has officially removed BlackRock from its divestment list of companies that allegedly "boycott the oil and gas industry." This decision was announced in a press release on Tuesday, with State Comptroller Glenn Hegar attributing the change to BlackRock’s recent strategic moves, including its exit from the Net-Zero Asset Manager (NZAM) initiative and a shift in its participation with Climate Action 100+.
Initially included in the divestment list in August 2022, BlackRock was the only U.S.-based firm facing a ban on business dealings with the state. The divestment list originated from a Texas law enacted in 2021, prohibiting state contracts with firms that limit engagement with fossil fuel industries. Following the latest update, the list now comprises 15 companies, all based outside the U.S.
Hegar noted that BlackRock has made substantial changes, dramatically reducing fund offerings that restrict investments in oil and gas. He emphasized the firm’s acknowledgment of both social and economic implications tied to limiting fossil fuel investments. BlackRock’s adjustments follow a turbulent period during which the Texas Permanent School Fund withdrew $8.5 billion from the firm due to state law compliance.
Despite its removal from the list, BlackRock continues to face scrutiny, including a lawsuit from Texas Attorney General Ken Paxton, alleging collusion among major asset managers to limit coal market access. BlackRock, alongside Vanguard and State Street, has denied these claims.
Hegar views BlackRock’s removal as a significant triumph, reflecting Texas’s leadership in energy sector discussions while noting that this decision is unrelated to their legal challenges or broader political criticism from Democratic lawmakers regarding climate alliances. BlackRock has yet to respond to press inquiries regarding its recent shift.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
