A school fund in Texas has pulled $8.5 billion of state money from BlackRock over accusations that the investment firm's alleged boycott of fossil fuel energy producers harms Texas' industries.
The move was conducted by the Texas Permanent School Fund (Texas PSF), a sovereign wealth fund and pension fund established in the 19th century to support the state's public schools. It highlights how many asset managers like BlackRock are continuing to attract controversy over their environmental, social and governance (ESG) investing. (Related: World's largest asset manager BlackRock exits globalist climate investment group.)
ESG investing refers to standards set by certain companies that allow "socially conscious" investors to screen where their investments go.
In a statement, Texas State Board of Education (SBOE) chairman Aaron Kinsey said the $53 billion Texas PSF had delivered an official notice to BlackRock "terminating its financial management" of Texas PSF assets.
Kinsey noted that the fund's leadership decided to do so to comply with a 2021 law that restricts state funds from going to companies that engage in boycotts of the fossil fuel industry. The Texas SBOE is in charge of directing where the Texas PSF's investments go.
Texas Senate Bill 13, passed in 2021, required the state comptroller to list financial companies found to boycott fossil fuel companies. Comptroller Glenn Hegar updated the list last October and it listed BlackRock. Hegar has since called on the Texas PSF and five other state pension funds to sever ties with the asset manager.
We are building the infrastructure of human freedom and empowering people to be informed, healthy and aware. Explore our decentralized, peer-to-peer, uncensorable Brighteon.io free speech platform here. Learn about our free, downloadable generative AI tools at Brighteon.AI. Every purchase at HealthRangerStore.com helps fund our efforts to build and share more tools for empowering humanity with knowledge and abundance.
"Today represents a major step forward for the Texas PSF and our state as a whole. The PSF will not stand idle as our financial future is attacked by Wall Street," said Kinsey. "This bold action helps ensure our PSF remains in fact permanent and will continue to support bright futures and opportunities for generations of Texas students."
BlackRock denies boycott claims, alleges it funds Texas' energy industry
In its response, BlackRock denied that it was engaged in any type of boycott against fossil fuel energy producers. It further noted that the money pulled represents a sliver of the more than $10 trillion in assets it currently manages.
Nevertheless, BlackRock in a statement did deny that it was boycotting energy companies, noting that it is pouring billions of dollars into Texas' energy industry.
"BlackRock is helping millions of Texans invest and save for retirement," said a spokesperson. "On behalf of our clients, we've invested more than $300 billion in Texas-based companies, infrastructure and municipalities, including $125 billion invested in the energy sector, including a $550 million joint venture with [Houston-based Occidental Petroleum]. We recently hosted an energy summit in Houston designed to explore how to strengthen Texas' power grid."
BlackRock's spokesperson further claimed that the SBOE and PSF's decision "jeopardizes Texas schools and the families who have benefited from BlackRock's consistent long-term outperformance for the Texas Permanent School Fund."
"The decision ignores our $120 billion investment in Texas public energy companies and defies expert advice," concludes the statement. "As a fiduciary, politics should never outweigh performance, especially for taxpayers."
Watch this episode of "Market Ultra" as hosts Pete Santilli and Craig Wenclewicz discuss how BlackRock is now responding to investor sentiment and turning on ESG.
This video is from the channel The Resistance 1776 on Brighteon.com.
More related stories:
Meet BlackRock: The "architect of woke capitalism" destroying America from within.
Sources include:
Please contact us for more information.