BlackRock Inc. was removed from Texas’ blacklist of companies that
boycott fossil fuels, ending a three-year standoff over the environmental
policies of the world’s largest asset manager.
The move mean
s pension funds and other state-run investment accounts — which
manage more than $300 billion of assets — will be allowed to purcha
se BlackRock shares, invest in its exchange-traded funds and hire the firm for advice and risk ma
nagement. Inclusion on the list resulted in some Texas entities pulling billions of dollars of assets from the firm.
State Comptroller Glenn Hegar said BlackRock had rolled back ma
ny of its green-focused initiatives, including exiting the Net Zero Asset
Managers initia
00+, a group devoted to cutting greenhouse gas emissions.
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The move marks a win for BlackRock Chief Executive Office
r Larry Fink, who has been courting Texas leaders. Last year, he took the stage with Lieutenant Governor Dan Patric
k at a summit focused on shoring up the state’s energy grid, and just months ago BlackRock sponsored a table a
t the Black Tie & Boots Gala, a celebration of conservative politics in Texas. The company is also backing a Dallas-based Texas Stock Exchange.
“We appreciate the Comptroller’s resolution of this matter,” a spokesperson for the firm said in a statement. “BlackR
ock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, l
ocal governments, energy infrastructure and other private assets through
out the state. These investments support the continued growth of the Texas economy.”
Hegar touted some of BlackRock’s steps. He said while they are “unre
lated” to the listing decision, the actions “show a real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy.”