BlackRock has been removed from a list of companies subject to divestment for “boycotting energy companies”, after the asset management firm exited climate-focused investment initiatives and revised its energy investment policies, according to Texas Comptroller Glenn Hegar.
In 2022, the list emerged amidst an anti-ESG drive in Republican-led states, gaining traction since President Trump’s election, with Texas leading the charge. Texas stands as the largest net energy supplier in the United States, offering nearly a quarter of the nation’s domestically produced energy and over 40% of the country’s crude oil proved reserves and production, as per the U.S. Energy Information Administration (EIA).
Under Texan law, the Comptroller is tasked with maintaining a “list of financial companies that boycott energy companies”, granting these companies 90 days to “cease boycotting energy companies to avert divestment by state governmental entities”.
BlackRock was initially included on this list when it was launched in 2022. Hegar acknowledged the changes made by BlackRock leading to its removal and noted that it “took the company longer than others in the financial sector to make the shift.” Other listed firms from 2022, except for Credit Suisse—which has since been acquired by UBS, remain on the list.
Hegar stated, “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.”
Steps taken by BlackRock leading to its removal from the list include its decision to exit the Net Zero Asset Managers (NZAM) initiative, reducing participation in Climate Action 100+, and cutting down on fund offerings that exclude oil and gas investments. Hegar highlighted BlackRock’s shift from policies disregarding the vital role of fossil fuel-based energy generation.
Fifteen companies remain on the Comptroller’s list, among them AMP, BNP Paribas, Crédit Agricole, Danske Bank, HSBC, Impax Asset Management, Jupiter Fund Management, NatWest, Nordea Bank, Rathbones, Schroders, Société Générale, Svenska Handelsbanken, Swedbank, and UBS, alongside numerous individual funds.
In a statement to ESG Today, a BlackRock spokesperson remarked, “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.”
