Targeted over its Environmental, Social and Governance policies of a few years ago, BlackRock, considered one of the largest investment firms in the world, has been removed from the blacklist in the state of Texas.
A similar blacklisting in Oklahoma remains in effect but the state’s anti-energy discrimination law remains on hold because of a constitutional battle before the Oklahoma Supreme Court. The law was created by the Oklahoma legislature when BlackRock, like a number of other firms, discriminated against the oil and gas industry in its investments.
But BlackRock has backed away from the discriminatory policy and in recent years has shown commitments of investing in some Oklahoma oil and gas firms as indicated by filings from those firms.
The removal of BlackRock from the Texas blacklist was made by Texas Comptroller Glenn Hegar.
“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. Texas has fostered transparency around the economic consequences of decades of misinformation regarding the so-called “energy transition” while highlighting the importance of the oil and gas industry and its critical connection to our daily lives.”
He said his office never set out to punish any of the firms added to the list.
“—and the hope was always that any firm we included on the list would eventually take steps to ensure they were removed. Following the lead of many of its competitors, BlackRock has finally done exactly that. While it took the company longer than others in the financial sector to make the shift, the end results are what matter.”
His action drew immediate response from Tim Hill, president of the Alliance for Prosperity and a Secure Retirement.
“We applaud today’s action by Texas Comptroller Glenn Hegar to update and remove a company from the list of investment advisors ineligible to work with the state on pension plans and financial matters. The company removed from the state boycott list, BlackRock, showed to the Comptroller that they had evolved to meet the needs of Texas, and the market more broadly.”
Just as there were constitutional concerns raised about a similar boycott list in Oklahoma, Hill expressed continuing concerns over the impact of the Texas boycott lists.
“—this decision shows that some policymakers are willing to recognize the importance of taking actions that ultimately are in the best interest of taxpayers, and a win for retirees and pensioners in Texas.”
According to the Alliance for Prosperity, one study estimated this boycott list cost Texas $668.7 million in lost economic activity, more than 3,000 full-time jobs, and $37.1 million in lost state and local tax revenue.
Listed companies are subject to the divestment provisions outlined in Texas Government Code Chapter 809, which define a financial company as a publicly traded financial services, banking or investment company. State governmental entities subject to the investment prohibitions and divestment requirements in the statute include the Employees Retirement System of Texas, Teacher Retirement System of Texas, Texas Municipal Retirement System, Texas County and District Retirement System, Texas Emergency Services Retirement System and the Texas Permanent School Fund.