Texas Fires BlackRock as Manager of Its $8.5 Billion School Fund Over ESG Issues

‘BlackRock’s destructive approach toward the energy companies ... is incompatible with our fiduciary duty to Texans,’ says education board chairman.

Larry Fink, CEO of BlackRock, speaks at a roundtable discussion at the COP28 Climate Conference at Expo City Dubai, United Arab Emirates, on Dec. 4, 2023. Sean Gallup/Getty Images

The Texas Board of Education announced on March 19 that it would divest $8.5 billion in state funds from BlackRock, the world’s largest asset manager.

Aaron Kinsey, chairman of Texas State Board of Education said that the move was necessary to comply with the 2023 state law, known as Senate Bill 13, which prohibits the state from investing with companies that the state comptroller deems to be discriminating against fossil fuel companies.