Texas Pulls $8.5 Billion from BlackRock in Fossil Fuel Policy Standoff

investing.com:

Quiver Quantitative — Texas's recent move to divest $8.5 billion from BlackRock (NYSE:BLK) (BLK), citing the company's policies on fossil fuels, has sparked significant controversy and criticism from the asset manager. This decision, announced by Aaron Kinsey, the Republican chairman of the Texas State Board of Education, aligns with a 2021 Texas law aimed at restricting investments with firms boycotting the fossil fuel industry.

BlackRock, identified by state Comptroller Glenn Hegar as one of such companies, responded by warning that this action could financially harm Texas schools and ignore BlackRock's substantial investments in the state's energy sector. Despite previous hints of easing tensions between Texas and BlackRock, this development suggests a continuing standoff, underlining the complex interplay between political directives and investment strategies impacting educational funding.

Market Overview: -Texas decides to withdraw $8.5 billion from BlackRock due to its fossil fuel policies. -BlackRock criticizes the decision, highlighting its potential negative financial impact on Texas schools.

Key Points: -The divestment is in compliance with a 2021 Texas law against investing in companies boycotting the fossil fuel industry. -BlackRock claims to support Texas energy companies with $120 billion investments and emphasizes the importance of performance over politics. -Speculation of eased tensions between Texas and BlackRock was noted earlier in the year but has since been contradicted by this action.

Looking Ahead: -Continued scrutiny of investment companies' policies regarding fossil fuels by Texas officials. -Potential financial implications for the Texas Permanent School Fund and the educational institutions it