On Tuesday, Texas removed BlackRock (NYSE: BLK) from its list of companies perceived to be boycotting the energy sector, following a significant reduction in the asset manager’s climate ambitions.

Texas Comptroller Glenn Hegar pointed to BlackRock’s exit from climate-related organizations, including the Net Zero Asset Managers initiative, and its reduced support for shareholder environmental resolutions as crucial reasons behind this decision. He also highlighted BlackRock’s support for a new Texas Stock Exchange as a positive development.

Hegar remarked, “BlackRock has recognized the real social and economic costs, both here in Texas and globally, that come from limiting investment in the oil and gas industry.”

Impact of Being Removed from the Boycott List

Being removed from the boycott list enables Texas state agencies to conduct business more easily with BlackRock. Additionally, this decision may strengthen BlackRock’s position in an ongoing lawsuit filed by Texas Attorney General Ken Paxton regarding the firm’s environmental practices.

BlackRock responded positively, stating, “We appreciate Comptroller Hegar’s decision. BlackRock is proud to assist millions of Texans in their retirement and invests more than $400 billion on behalf of clients in corporations, local governments, energy infrastructure, and various other private assets across the state, supporting the growth of the Texas economy.”

Background Information

BlackRock and several European asset managers were added to Texas’s boycott list in 2022 in response to increasing focus on environmental, social, and governance (ESG) issues, which many perceived as hindering investments in conventional energy sectors.

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