June 5, 2025

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BlackRock exits Texas oil ‘boycott’ blacklist after ESG retreat

2 min read
BlackRock exits Texas oil 'boycott' blacklist after ESG retreat

BlackRock’s ESG backpedaling shows “a real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy,” said Glenn Hegar, the state comptroller.

Michael Dorman

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 means pension funds and other state-run investment accounts — which manage more than $300 billion of assets — will be allowed to purchase BlackRock shares, invest in its exchange-traded funds and hire the firm for advice and risk management. 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 many of its green-focused initiatives, including exiting the Net Zero Asset Managers initiative and stepping back from the Climate Action 100+, a group devoted to cutting greenhouse gas emissions. 

The move marks a win for BlackRock Chief Executive Officer Larry Fink, who has been courting Texas leaders. Last year, he took the stage with Lt. Gov. Dan Patrick at a summit focused on shoring up the state’s energy grid, and just months ago BlackRock sponsored a table at the Black Tie & Boots Gala, a celebration of conservative politics in Texas. The company is also backing a Dallas-based Texas Stock Exchange.

Hegar touted some of BlackRock’s steps. He said while they are “unrelated” 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.”