BlackRock loses $8.5 billion Texas contract because of anti oil and gas policies


Recent SEC filings showed how BlackRock investment had reportedly eased its anti-oil and gas stance and actually held investments in Oklahoma oil and gas firms. But in Texas, the company learned this week, its $8.5 billion investment contract with the Texas State Board of Education was terminated, ripped apart, stopped and otherwise thrown in the trash.

It was because of BlackRock’s ESG policies which Texas found to be anti-oil-and-gas.

Board Chairman Aaron Kinsey made the announcement with FOX Business, explaining the Texas Permanent School Fund and delivered a notice to BlackRock on Tuesday, informing the New York City-based firm of the action.

“The Texas Permanent School Fund has a fiduciary duty to protect Texas schools by safeguarding and growing the approximately $1 billion in annual oil and gas royalties managed by the Texas General Land Office,” Kinsey said in a statement Tuesday, as reported by FOX Business.

“Terminating BlackRock’s contract ensures PSF’s full compliance with Texas law.”

Blackrock issued a statement in response.

“BlackRock is helping millions of Texans invest and save for retirement. On behalf of our clients, we’ve invested more than $300 billion in Texas-based companies, infrastructure and municipalities, including $125 billion invested in the energy sector, including $550 million a joint venture with Occidental. We recently hosted an energy summit in Houston designed to explore how to strengthen Texas’ power grid.”

In Oklahoma, BlackRock remains on a list of firms banned from handling investments of state agencies including several retirement funds because of a new state law and the firm’s ESG policy.

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