Texas has declared that BlackRock and nine listed European financial groups “boycott” the fossil fuel industry, a designation that could lead state pension funds with billions of dollars under management to divest shares held in the groups.
The announcement by Glenn Hegar, Texas comptroller, escalates the campaign against environmental, social and governance investing in Republican-led US states. Florida on Tuesday passed a resolution banning its pension fund managers from taking ESG considerations into account with their investing strategies.
The US’s largest producer of oil and gas, Texas in 2021 passed a law that attacked ESG investing for potentially hurting the industry. The provisions require state pension and school funds to divest shares they hold in financial groups which, in the government’s view, “boycott energy companies”.