Business
ESG Policies Of BlackRock Cause Texans To Withdraw $8.5 Billion
(CTN News) – A Texas school fund has informed BlackRock that it is terminating a contract with the world’s biggest asset manager in light of its energy-related investment policies, which impose a risk on around $8.5 billion of state money.
The state of Texas has led the politically conservative states in restricting the use of public funds to make investments with BlackRock, which has itself been one of the leading Wall Street firms in embracing the principles of environmental, social, and governance (ESG).
Aaron Kinsey, the chairman of the Texas Permanent School Fund, said in a statement posted on X that the fund’s relationship with BlackRock violated state law prohibiting the fund from investing with companies that boycott energy companies.
A statement from the PSF stated that “BlackRock’s dominant and persistent leadership in the ESG movement has caused tremendous damage to our state’s oil and gas economy, and to the very companies that generate revenue for our PSF. The PSF will not stand idle when Wall Street attacks our financial future,” it added.
A spokesperson for BlackRock said, “BlackRock helps millions of Texas residents invest and save for retirement.” Our firm has invested more than $300 billion in Texas-based companies, infrastructure, and municipalities on behalf of our clients, including $125 billion in the energy industry.
As an example, the spokesperson mentioned a $550 million joint venture Occidental Petroleum has with Energy Transfer Partners and a recent event held by the Chief Executive Larry Fink and a Texas official that pledged to work together to fund the infrastructure for energy development in the state.
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