Texas Comptroller Glenn Hegar recently announced the removal of BlackRock Inc. from the state’s investment blacklist. This significant move reverses a previous ban imposed on financial companies deemed to be boycotting the oil and gas industry.

The decision stems from Senate Bill 31, passed in 2021. This legislation prohibits Texas state entities from investing in firms that actively boycott energy businesses – a boycott defined as refusing to deal with such companies, terminating contracts, or taking actions leading to economic harm.

In 2022, Comptroller Hegar initiated a review, contacting several international financial companies, including BlackRock, to clarify their investment policies concerning fossil fuels. Following this review, a list of companies considered to be boycotting the energy sector was compiled, and BlackRock was initially included.

BlackRock’s removal from the blacklist signals a potential shift in the state’s approach to ESG (Environmental, Social, and Governance) investing and its impact on the energy sector. The exact reasons for the change remain to be fully clarified, but it marks a notable development in the ongoing debate surrounding fossil fuel investments and state-level regulations.