Texas has taken a bold step by choosing to withdraw $8.5 billion of its investments from BlackRock (NYSE:BLK), citing concerns over the asset manager’s stance on fossil fuels. This aligns with a 2021 law aimed at preventing investments in companies that boycott oil and gas industries. Aaron Kinsey, the Republican chairman of the Texas State Board of Education, announced this decision.
The action is portrayed as a move to ensure the Texas Permanent School Fund, which significantly benefits from oil and gas royalties, adheres to state law and continues to effectively support Texas schools.
BlackRock, on the other hand, criticized the decision, suggesting it could have adverse financial implications for the state’s educational institutions. The company argued that political motives should not override the importance of financial performance for taxpayers.
This divestment reflects a broader trend among Republicans, who…
