EnergyOver 150 Companies Sent Inquiries About Fossil Fuel-Boycotting Investment Funds, Comptroller Says

This second round comes as the comptroller looks to narrow down a list of companies from which to pull any state investments.
April 26, 2022
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Nearly 160 financial companies have been identified by the State of Texas for offering investment services that “appear to boycott fossil fuels.”

The Texas Comptroller of Public Accounts mailed out letters to those companies as its second batch of warnings to those deemed to be running afoul of Senate Bill (SB) 13 — legislation prohibiting state investments from going to companies deemed to harbor oil and gas divestment policies or offerings.

Initially, the comptroller sent letters to 19 companies, including the world’s largest asset-management company BlackRock, that the agency identified as harboring deliberate fossil fuel divestment policies. This new tranche includes companies such as Fidelity and Goldman Sachs that offer investment funds specifically designed to exclude fossil fuel companies.

“The Comptroller has determined you may be a financial company that boycotts energy companies or affiliated with a financial company that boycotts energy companies,” states the letter to the second batch of companies. 

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It then asks the companies to answer a set of 10 questions in response to the assessment made by the comptroller about their offerings.

Recipients must reply by the 61st day after receiving the letter, otherwise the company will be “presumed to be boycotting energy companies.”

When announcing the first group of letters, Comptroller Glenn Hegar alluded to this second batch, saying, “Another round of letters soon will be mailed to more than 100 other publicly traded investment companies that appear to have one or more funds boycotting fossil fuels.”

“These companies will be asked to list all of their mutual funds and ETFs that refuse to invest in fossil fuels. Responses collected from these entities will help finalize the Comptroller’s list of companies that boycott the fossil fuel sector.”

Once the comptroller narrows down the final list of companies running afoul of SB 13, he will begin pulling state pension investments from these companies.

As of earlier this year, the state’s largest pension fund, the Teacher Retirement System, had almost $7.5 billion in funds tied to BlackRock — whether BlackRock stock or BlackRock-managed funds.

These policies and services are part of a broader effort — known as Environmental, Social, and Governance (ESG) ratings — to push capital away from fossil fuels and toward renewable energy sources. Even fossil fuel companies are joining the trend, some coerced and some of their own volition.

Companies like BlackRock and Diamondback Energy say they’re just following their shareholders’ demands, but in many circumstances, the portfolio managers, such as BlackRock, are using the proxy vote power to push certain boardroom policies with their clientele, the actual shareholders, being none the wiser.

Texas’ efforts are part of a broader coalition of red states evaluating their portfolios for companies that are allegedly advancing “green” energy policies and practices.

The letter recipients are listed below.

Company
13D Management LLC
1919 Investment Counsel LLC
Abrdn PLC
Accrued Equities Inc/New Alternatives Fund Inc
Adler Asset Management
Advisors Preferred LLC
AGF Investment Ltd.
AllianceBernstein LP
Allspring Funds Management LLC
ALPS Advisors Inc
American Beacon Advisors Inc
American Century Investment Management Inc
AMG Funds LLC
Amplify Investments LLC
Amundi Asset Management/Pioneer Investment Management Inc
Angel Oak Capital Advisors LLC
Apollo Global Management, Inc
AQR Capital Management LLC
Ariel Investments LLC
Artisan Partners LP
Ashmore Investment Advisors Ltd
Aspiration Fund Adviser LLC
AXS Investments LLC
Azzad Asset Management Inc
Barclays Capital Inc
BlackRock, Inc.
Blackstone Inc
BNP Paribas
BNY Mellon Investment Adviser Inc
Boston Common Asset Management LLC
Boston Trust Walden Inc
Bramshill Investments LLC
Brookfield Investment Management Inc
Brown Advisory LLC
Calamos Asset Management
Calvert Investment Management Inc
Capital Research & Management Co
Coho Partners Ltd
Columbia Management Investment
Community Capital Management Inc
Credit Suisse Group AG
CrossingBridge Advisors LLC
Crossmark Global Investments Inc
Cushing Asset Management LP
CWM Advisors LLC
Dana Investment Advisors Inc
Danske Bank A/S
DBX Advisors LLC/DWS
Deutsche Investment Mgmt Americas
DFA Dimensional Funds
Domini Impact Investments LLC
ETF Managers Group
Eventide Asset Management LLC
Everence Capital Management Inc
Federated Investment Management Co
Fidelity Investments
Finite Management LLC
First Trust Portfolios LP
Firsthand Capital Management Inc
Fisher Asset Management LLC
Franklin Templeton Investments
Fred Alger Management LLC
Frontegra Asset Management
Gabelli Asset Management Co
Glenmede Investment Management LP
Global X Management Co LLC
Goldman Sachs Asset Management LP
Gotham Asset Management LLC
Grantham Mayo Van Otterloo & Co LLC
Great-West Capital Management LLC
Green Century Capital Management Inc
Guinness Atkinson Asset Mmgt Inc
Hartford Funds Management Co LLC
HC Capital Solutions
Horizon Investments, LLC
HSBC Holdings plc
Impact Shares, Corp
Impax Asset Management/Pax World Funds
Invesco Ltd.
Janus Henderson Investors US LLC/Janus Funds
JOHCM (USA) Inc
John Hancock Investment Management
JPMorgan Chase & Co.
Jupiter Fund Management plc
Kayne Anderson
Kennedy Capital Management Inc
Knights of Columbus Asset Advisors
Krane Funds Advisors LLC
Lazard Asset Management
Legg Mason Partners Fund Advisor
Lord, Abbett & Co LLC
Luther King Capital Management
Man Group plc
Matthews International Capital Management LLC
Metropolitan West Asset Management LLC
Morgan Stanley Invest Mgmt Inc
Nationwide Fund Advisors
Natixis Global Asset Management
Natwest Group plc
Neuberger Berman Management Inc
New York Life Investment Mgmt
Ninety One North America, Inc
Nordea Bank Abp
Northern Trust Investments Inc
Nuveen Investments Inc
One Capital Management/FundX Investment Group
Pacific Financial Group Inc
Pacific Investment Management Co LLC
Pacific Life Fund Advisors LLC
Park Place Capital Corp/Nashville Capital Corporation
Parnassus Investments
Payden Investment Group
Pear Tree Advisors Inc
Perkin Hardy Strauss Wealth Mgmt
PGIM Investments LLC
Putnam Investment Management LLC
Rathbones Group PLC
RBC Global Asset Management (US) Inc
Reflection Asset Management LLC
Reynders McVeigh Capital Management
Rockefeller & Co LLC
Russell Investments
Sarasin Investment Funds Ltd
Saturna Capital Corporation
Schroders plc
Segall Bryant & Hamill LLC
SEI Investments Management Corp
Shelton Capital Management
SIT Mutual Funds Inc
SKBA Capital Management LLC
SSgA Funds Managment
Sumitomo Mitsui Trust Holdings, Inc.
Svenska Handelsbanken AB
Swedbank AB
T Rowe Price Associates Inc
TCW Group Inc
The Vanguard Group
Thornburg Investment Management Inc
TIAA-CREF Investment Management LLC
Timothy Partners Ltd
Tortoise Capital Advisors LLC
Touchstone Advisors Inc
Towle & Co
Tran Capital Management LLC
Trillium Asset Management LLC
UBS Group AG
Valic Co I
Van Eck Associates Corp
Vert Asset Management LLC
Victory Capital Management Inc
Vident Investment Advisory LLC
Viking Fund Management LLC
Virtus Investment Advisers
WCM Investment Management LLC
Wellington Management Group LLP
Wells Fargo & Company
WisdomTree Asset Management Inc
Zeo Capital Advisors LLC

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Brad Johnson

Brad Johnson is an Ohio native who graduated from the University of Cincinnati in 2017. He is an avid sports fan who most enjoys watching his favorite teams continue their title drought throughout his cognizant lifetime. In his free time, you may find Brad quoting Monty Python productions and trying to calculate the airspeed velocity of an unladen swallow.