Texas has made headlines by divesting a substantial $8.5 billion from BlackRock, signaling a decisive break from the controversial ESG (Environmental, Social, and Governance) movement.
The decision represents a significant departure from the ESG trend that has gained traction in recent years. With BlackRock being one of the major companies at the forefront of this movement, Texas has boldly severed financial ties with the trillion-dollar asset manager.
Chairman Aaron Kinsey, a member of the Texas State Board of Education, emphasized that the divestment aligns with Texas law and protects the state’s financial interests, particularly the Texas Permanent School Fund (PSF). The PSF, established in 1845, manages approximately $1 billion in annual oil and gas royalties. By terminating BlackRock’s contract, Texas has shielded its vital energy sector from global corporations and freed up money that can be returned back to taxpayers.
“BlackRock’s dominant and persistent leadership in the ESG movement immeasurably damages our state’s oil and gas economy and the very companies that generate revenues for our PSF,” Kinsey wrote. “BlackRock’s destructive approach toward the energy companies that this state and our world depend on is incompatible with our fiduciary duties to Texans.”
Texas’ decision to sever ties with BlackRock underscores a pivotal stance in protecting the state’s energy sector and adhering to fiscal responsibility. By divesting from financial institutions like BlackRock, Kinsey has helped to solidify Texas’ commitment to preserving its oil and gas industries against adverse externalities.
As other states hopefully follow suit in rejecting the ESG agenda, Texas has set a powerful example of commitment to its economic sovereignty.
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