Texas Comptroller Glenn Hegar announced this week the removal of BlackRock Inc. from Texas’ list of financial companies that boycott the oil and gas industry.
The move marks a significant reversal in Texas’ stance toward the global investment firm.
The removal follows BlackRock’s decision to scale back its participation in climate-focused financial coalitions and reduce its exclusion of fossil fuel investments.
Earlier this year, BlackRock exited the Net Zero Asset Managers initiative, pulling back from its participation in Climate Action 100+, and dramatically cutting the number of fund offerings that prohibit oil and gas investments.
In a press release, Comptroller Hegar called it “a meaningful victory and validates the leadership Texas has shown on this issue.” “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,” he added.
The Texas Comptroller emphasized that BlackRock's removal signals a broader shift in energy investment discourse. “Texas has fostered transparency around the economic consequences of decades of misinformation regarding the so-called ‘energy transition,’” he said. “My goal from the moment we started this process has been to cultivate a more intellectually honest conversation.”
BlackRock’s removal from the list follows a decline in the number of funds Texas considers to be boycotting the fossil fuel industry. The number dropped to 332 from 350 since the last update in November 2023.
John Kelly, BlackRock's Global Head of Corporate Affairs, responded to the updated list. "We appreciate the Comptroller’s resolution of this matter," he said. "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.”
Texas Government Code Chapter 809 requires certain state entities, which include the Teacher Retirement System and the Texas Permanent School Fund Corp., to divest from listed companies. Entities must report their holdings in such companies within 30 days of receiving the list and submit annual updates to the legislature and attorney general.
