Danielle Moran
4 min read
In This Article:
(Bloomberg) -- BlackRock Inc. was removed from Texas’ blacklist of companies that boycott fossil fuels, ending a three-year standoff over the environmental policies of the world’s largest asset manager.
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The move means pension funds and other state-run investment accounts — which manage more than $300 billion of assets — will be allowed to purchase BlackRock shares, invest in its exchange-traded funds and hire the firm for advice and risk management. Inclusion on the list resulted in some Texas entities pulling billions of dollars of assets from the firm.
State Comptroller Glenn Hegar said BlackRock had rolled back many of its green-focused initiatives, including exiting the Net Zero Asset Managers initiative and stepping back from the Climate Action 100+, a group devoted to cutting greenhouse gas emissions.
The move marks a win for BlackRock Chief Executive Officer Larry Fink, who has been courting Texas leaders. Last year, he took the stage with Lieutenant Governor Dan Patrick at a summit focused on shoring up the state’s energy grid, and just months ago BlackRock sponsored a table at the Black Tie & Boots Gala, a celebration of conservative politics in Texas. The company is also backing a Dallas-based Texas Stock Exchange.
“We appreciate the Comptroller’s resolution of this matter,” a spokesperson for the firm said in a statement. “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.”
Hegar touted some of BlackRock’s steps. He said while they are “unrelated” to the listing decision, the actions “show a real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy.”
The company was a major target for conservative activists for years, with groups taking out advertisements around the country targeting the firm and Fink in particular. They argued the company was trying to influence corporate America and wider society through its support for ESG and sustainable investing.
Republican officials in several states joined in that campaign, pulling money from the firm and arguing that it was harming fossil-fuel producing states like Texas. Fink himself said he would no longer use the ESG term because it had been politicized.
