BlackRock removed from Texas divestment list after climate alliance exits
The Texas Comptroller's office has removed BlackRock from the state's list of companies who allegedly 'boycott the oil and gas industry,' according to a Tuesday press release.
State Comptroller Glenn Hegar credited BlackRock for exiting the Net-Zero Asset Manager initiative and downgrading its participation in Climate Action 100+, which he said was 'directly related to [the state's] listing process' in a June 3 statement accompanying the update.
BlackRock was among the initial 10 firms named in the divestment list published in August 2022 and, despite quarterly updates to the list, was the only United States-based firm listed and banned from doing business with the state.
The divestment list was created by a 2021 Texas law banning the state from doing business with companies that 'limit commercial relations' with fossil fuel companies. After Hegar added London-based bank NatWest Group to the list in August 2024, the list had grown to include 16 companies and 350 investment funds that qualified for divestment. After the June 3 update, the list stands at 15 companies — all based outside of the U.S. — and 332 funds.
Hegar said, in addition to BlackRock's changed participation in industry climate groups, the nation's largest asset management firm 'dramatically reduced the number of fund offerings that prohibit investments in oil and gas' and has 'acknowledged the real social and economic costs, both in Texas and globally, that come from limiting investment in the oil and gas industry.'
BlackRock shifted its membership in CA100+ to a smaller international arm of its business in February 2024; more than 70 investors have left the group since House Republicans began probing its membership. BlackRock's exit from NZAM this January prompted the United Nations-backed group to suspend all operations while it undergoes a full review of its program.
The Texas comptroller said his team hoped to create a process 'that gave companies a clear understanding of how they got on our list and a definitive path to removal' and BlackRock took steps to ensure they were removed.
'This is a meaningful victory and validates the leadership Texas has shown on this issue, which has seen a monumental shift in the way companies, governments and individual Americans view the energy sector,' Hegar said. 'While it took [BlackRock] longer than others in the financial sector to make the shift, the end results are what matter.'
The removal of BlackRock from the state's divestment list comes after the Texas Permanent School Fund pulled $8.5 billion in funding from the asset manager to comply with the state law. At the time, a BlackRock spokesperson told ESG Dive that the divestment was 'arbitrary' and ignored the firm's '$120 billion investment in Texas public energy companies.'
Hegar said Tuesday that BlackRock has shown 'real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy' by supporting the creation of the Texas Stock Exchange and "limiting support for activist shareholders to curtail fossil fuel investments.' However, Hegar said that assessment and those actions are 'unrelated to [the state's] listing decision.'
While BlackRock is no longer on the divestment list, the firm is still a defendant, along with Vanguard and State Street, in a lawsuit filed by Texas Attorney General Ken Paxton accusing the asset managers of forming a 'cartel' to artificially restrict the coal market. The nation's largest three asset managers have denied the allegations and filed a joint motion to dismiss the lawsuit, though the Federal Trade Commission and Department of Justice issued a joint statement last week siding with Paxton and 10 other Republican-led states' view of the case.
BlackRock is also facing scrutiny from Congressional Democrats for its climate alliance walkbacks. The firm was one of 12 major U.S. banks and financial institutions that received a letter from Democratic lawmakers which sought to understand where the company's current climate commitments stand.
BlackRock did not immediately respond to a request for comment.
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'This enhanced financial position gives us the flexibility to invest in growth, pursue strategic initiatives, and deliver sustainable value to our shareholders. We remain committed to disciplined capital management as we expand our operations, strengthen key partnerships, and execute on our long-term vision to drive innovation and create a lasting impact in our industry.' About Diginex Diginex Limited (Nasdaq: DGNX; ISIN KYG286871044), headquartered in London, is a sustainable RegTech business that empowers businesses and governments to streamline ESG, climate, and supply chain data collection and reporting. The Company utilizes blockchain, AI, machine learning and data analysis technology to lead change and increase transparency in corporate regulatory reporting and sustainable finance. Diginex's products and services solutions enable companies to collect, evaluate and share sustainability data through easy-to-use software. The award-winning diginexESG platform supports 19 global frameworks, including GRI (the 'Global Reporting Initiative'), SASB (the 'Sustainability Accounting Standards Board'), and ISSB (IFRS Sustainability Disclosure Standards). Clients benefit from end-to-end support, ranging from materiality assessments and data management to stakeholder engagement, report generation and an ESG Ratings Support Service. For more information, please visit the Company's website: Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as 'approximates,' 'believes,' 'hopes,' 'expects,' 'anticipates,' 'estimates,' 'projects,' 'intends,' 'plans,' 'will,' 'would,' 'should,' 'could,' 'may' or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results disclosed in the Company's filings with the SEC. Diginex Investor Relations Email: [email protected] IR Contact - Europe Anna Höffken Phone: +49.40.609186.0 Email: [email protected] IR Contact - US Jackson Lin Lambert by LLYC Phone: +1 (646) 717-4593 Email: [email protected] IR Contact - Asia Shelly Cheng Strategic Financial Relations Ltd. Phone: +852 2864 4857 Email: [email protected]
