BlackRock removed from Texas boycott list after quitting climate groups

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(Reuters) - Texas on Tuesday removed BlackRock from a list of companies seen as boycotting the energy industry, a step the New York asset manager won only with steep cuts to its climate ambitions.

Texas Comptroller Glenn Hegar said the decision reflected BlackRock's retreats from industry climate groups like the Net Zero Asset Managers initiative. He also noted how the firm has lowered its support for shareholder environmental resolutions and backed a new Texas Stock Exchange.

BlackRock "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," Hegar said in a statement.

The firm's removal from the boycott list will make it easier for Texas state agencies and funds to do business with the top asset manager. It could also factor into BlackRock's defense in a lawsuit brought by Texas Attorney General Ken Paxton over its environmental record.

BlackRock said it appreciated Hegar's decision. "BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state. These investments support the continued growth of the Texas economy,” the company said in a statement.

Hegar had added BlackRock and various European managers to his list in 2022 under a state law passed the prior year in response to Wall Street's embrace, at the time, of environmental and social investment priorities.

Faced with political pressure that has intensified under President Donald Trump's administration, various BlackRock rivals have also left industry climate groups and cut back on their support for shareholder resolutions, which called for changes like emissions cuts or limits.

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