Overview

• The Texas Permanent School Fund pulled its $8.5 billion investment from BlackRock, citing the company's ESG policies as harmful to the state's energy industry.
• BlackRock responded, stating the decision harms Texas, its institutions, and taxpayers, and contradicts the firm's significant investments in Texas energy companies.
• The move follows a law enacted in 2021 preventing Texas governmental entities from investing in companies with policies against fossil fuels and firearms industries.
• Recent efforts to mend relations between Texas officials and BlackRock, including a joint appearance at an energy summit, did not prevent the investment withdrawal.
• Critics argue the decision to divest intertwines politics with finance, potentially impacting Texas taxpayers and the state's educational funding.