Texas Comptroller Glenn Hegar Announces Update to List of Financial Companies that Boycott Energy Companies
(AUSTIN) — Texas Comptroller Glenn Hegar announced today he has updated his office's list of companies that boycott the oil and gas industry, removing BlackRock Inc. Listed companies are subject to the divestment provisions outlined in Texas Government Code Chapter 809, which define a financial company as a publicly traded financial services, banking or investment company.
The Comptroller’s office also reviewed investment funds, which are subject to the same provisions as the companies, and identified about 332 that qualify for divestment, down from 350 investment funds when this list was last updated in November 2023.
“I am pleased to announce a significant decline in the number of investment funds that boycott the oil and gas industry, as well as the removal of BlackRock Inc. from the Comptroller's office list of companies that boycott energy companies,” Hegar said. “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.
“Texas has fostered transparency around the economic consequences of decades of misinformation regarding the so-called ‘energy transition’ while highlighting the importance of the oil and gas industry and its critical connection to our daily lives. My goal from the moment we started this process has been to cultivate a more intellectually honest conversation, and, once that conversation could take place, I hoped the result would be changes in policy and practice.”
BlackRock was delisted in part because it stepped back from full participation in the Climate Action 100+ and completely exited the Net Zero Asset Managers initiative. It also dramatically reduced the number of fund offerings that prohibit investment in oil and gas, and it shifted away from blanket policies that ignore the critical need for fossil fuel-based energy generation now and long into the future.
“The company has acknowledged the real social and economic costs, both here in Texas and globally, that come from limiting investment in the oil and gas industry. In short, it is engaging in a more intellectually honest conversation,” said Hegar, who makes additional comments on delisting BlackRock on the Comptroller’s website.
The Comptroller’s office continues to publish the answers to frequently asked questions (PDF) regarding the entire listing process and the research conducted by agency staff.
The list was originally provided in August 2022. State governmental entities subject to the investment prohibitions and divestment requirements in the statute include the Employees Retirement System of Texas, Teacher Retirement System of Texas, Texas Municipal Retirement System, Texas County and District Retirement System, Texas Emergency Services Retirement System and the Texas Permanent School Fund Corp.
On the 30th day after receiving the updated list, a state governmental entity must notify the Comptroller of the listed financial companies in which the entity owns direct or indirect holdings. And not later than Jan. 5 of each year, such entities are required to submit a report to the presiding officer of each house of the Legislature and the Texas attorney general that identifies all securities sold, redeemed, divested or withdrawn in compliance with the Texas Government Code.
The Comptroller’s office continues to review information on an ongoing basis, and the list may be subject to change as often as quarterly. The Comptroller encourages state governmental entities to review the listing criteria to determine whether prospective investments could be subject to listing later, as well as any current business dealings with listed entities in Annex 1.
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