As 19 states question global investment firm BlackRock over what they believe are inconsistent stances on environmental, social, governance (ESG) and energy investments, a former Texas lawmaker questions if antitrust laws are being broken.
Jason Isaac, director of the Texas Public Policy Foundation’s Life: Powered national initiative and a former state representative, took to Twitter Aug. 4 to share his thoughts on the matter.
“#ESG activists and lenders who steer money away from politically disfavored industries—such as fossil fuel exploration and production—may be colluding on group boycotts of energy producers in violation of antitrust laws,” Isaac wrote in a tweet
Missouri Attorney General, Eric Schmitt, Texas Attorney General, Ken Paxton, and attorneys general from 17 other states including Arizona, Kentucky, and Ohio, signed a letter demanding answers from BlackRock CEO Larry Fink.
In the letter, the attorneys general wrote, “BlackRock’s actions on a variety of governance objectives may violate multiple state laws.”
Schmitt shared the letter in an Aug. 4 tweet.
“Today, the Missouri Attorney General’s Office and 18 other states demanded answers from BlackRock’s CEO, Laurence Fink, for contradictory positions on ESG and energy investments,” Schmitt wrote in the tweet.
Texas has targeted investment firms like BlackRock that have taken actions against the oil and gas industry, according to a report by the Austin Journal.
Lawmakers in Texas passed the Oil and Gas Protection Act which forbids organizations known to discriminate against fossil fuels from doing business with the state, the Austin Journal reported. Companies believed to have violated the law were sent letters from Comptroller, Glenn Hegar, allowing them 60 days to comment on their policies.
“A company that fails to provide clarification 60 days after receiving this letter will be presumed to be boycotting energy companies,” Hegar said in the Austin Journal report.
