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

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. 

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.