Texas Comptroller of Public Accounts Glenn Hegar on Wednesday (March 16) wrote nearly 20 companies to inform them that they may have violated the state's Oil & Gas Protection Act, asking them to clarify their fossil fuel investment policies and present a list of portfolio funds that prevent or restrict investment in fossil fuels.
The Texan reported that 19 companies to receive letters from Hegar are Abrdn, PLC; BlackRock; BNP Paribas; Credit Suisse Group AG; Danske Bank A/S; HSBC Holdings PLC; Invesco, Ltd.; JPMorgan Chase & Co.; Jupiter Fund Management, PLC; Man Group, PLC; NatWest Group, PLC; Nordea Bank Abp; Rathbones Group, PLC; Schroders, PLC; Sumitomo Mitsui Trust Holdings, Inc.; Svenska Handelsbanken AB; Swedbank AB; UBS Group AG and Wells Fargo & Company.
According to a statement issued by the comptroller's office, these companies are repeatedly advocating the Biden administration's push toward green energy.
“A handful of companies are echoing promises by the Biden administration about a ‘transition’ to green energy,” Hegar said in the statement. “They’ve managed to convince people that electric cars and wind and solar power generation can meet our energy needs, and if we just stop investing in oil and gas, the transition will be swift and painless."
Hegar further insinuated that the companies engaged in mixed messaging.
“Our research thus far shows that some companies are telling us and other energy-producing states one thing, and then turning around and telling their liberal clients in other states another thing,” Hegar said.
The Houston Daily reported that the Texas Legislature last year approved the Oil & Gas Investment Protection Act, or SB13, during its 87th session.
According to the publication, the measure bars state entities such as pensions from working with financial firms that eschew energy companies.
It's the comptroller's responsibility to compile a list of those companies and notify them in writing that the state could divest from them if they don't lift their boycotts, according to the law, the Houston Daily reported.
A notable company that raised the state's eyebrows is BlackRock.
Earlier this year, Lt. Gov. Dan Patrick wrote Hegar to have BlackRock included on the list, a press release issued by the lieutenant governor's office said.
"As you prepare the official list of companies that boycott energy companies, I ask that you include BlackRock, and any company like them, that choose to hurt Texas oil and gas energy companies by boycotting them in violation of Senate Bill 13," Patrick said to the comptroller, according to the release.
The Austin Journal reported that BlackRock, which was founded in 1988 as a multinational investment corporation, has $10 trillion under management to earn the distinction of the world's largest asset manager.
Hegar said in the release that the companies accused of violating SB13 have approximately two months to formally respond.
"A company that fails to provide clarification 60 days after receiving this letter will be presumed to be boycotting energy companies," the comptroller stated.
Texas Business Daily reported that Hegar won't stop at just the 19 implicated.
"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," he said, according to the publication. "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."