From Blacklist to Business Partner: Texas Clears Way for BlackRock Investments

The Texas Comptroller’s office announced this week that BlackRock has been removed from the state’s list of companies deemed to be boycotting the oil and gas sector. The move signals a notable shift in the state’s stance toward the world’s largest asset manager, which had previously been penalized under a 2021 state law for allegedly limiting investment in fossil fuels.

Comptroller Glenn Hegar said in a statement Tuesday that BlackRock has demonstrated a clearer understanding of the economic importance of energy investment, both globally and within Texas. Hegar noted that the firm is now “engaging in a more intellectually honest conversation” about the role of oil and gas. Additional remarks were posted on the Comptroller’s website, as reported by ESGDIVE.

The decision to delist BlackRock follows the firm’s retreat from certain high-profile climate initiatives, including a move in January to exit the Net Zero Asset Managers (NZAM) alliance, which led the United Nations-backed group to suspend operations for review. Earlier, BlackRock had also scaled back its participation in Climate Action 100+, transitioning involvement to a smaller international subsidiary. These moves came amid political pressure and congressional investigations from House Republicans, which triggered a broader exit of over 70 institutional investors from CA100+.

For Texans, the change carries practical and political weight. Under the 2021 state law, public entities in Texas—such as school districts and state funds—are barred from doing business with firms that “boycott” fossil fuels. In line with that, the Texas Permanent School Fund had previously withdrawn $8.5 billion from BlackRock. The firm objected to the decision, arguing it ignored its substantial energy sector investments in Texas, which it valued at $120 billion.

Though no longer on the divestment list, BlackRock remains entangled in legal challenges. The firm is still a defendant in a lawsuit brought by Texas Attorney General Ken Paxton, which accuses several asset managers of colluding to restrict coal investments. At the same time, Democratic lawmakers in Washington have raised concerns over the firm’s retreat from climate-related commitments and sent letters to major financial institutions seeking clarification on their current environmental strategies.

The broader stakes for Texas are significant: the state economy is deeply tied to the oil and gas industry, and public investment decisions have real consequences for school funding, pensions, and infrastructure. The removal of BlackRock could open the door for renewed state-level investments with the firm, potentially restoring access to one of the most influential players in global finance, at a time when markets and political sentiment around energy and climate are rapidly evolving.