Texas has removed BlackRock from its list of companies deemed to be boycotting the energy industry, following significant changes to the asset manager’s climate-related policies.
State Comptroller Glenn Hegar said the decision reflects BlackRock’s recent actions, including its exit from climate alliances such as the Net Zero Asset Managers initiative, reduced support for shareholder environmental resolutions, and endorsement of the new Texas Stock Exchange. Hegar noted the firm had “acknowledged the real social and economic costs” of limiting investment in oil and gas.
The move will make it easier for Texas state agencies and pension funds to engage with BlackRock, which manages more than $400 billion in investments across Texas. It may also bolster the firm’s defence in an ongoing lawsuit brought by Texas Attorney General Ken Paxton over its environmental stance.
BlackRock welcomed the decision, stating: “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.”
BlackRock was added to the Texas boycott list in 2022, alongside several European firms, under a state law targeting financial institutions seen as hostile to fossil fuel investments. Amid mounting political scrutiny—particularly under the current Republican administration—BlackRock and other major asset managers have retreated from high-profile climate commitments and scaled back their support for ESG-related shareholder resolutions.
However, the shift has drawn criticism from Democratic leaders and climate advocates, who accuse financial firms of abandoning their earlier commitments to environmental sustainability.
