More than 300 pages of city financial records were obtained. Dallas Express Dallas’ defined-contribution pension plan for city employees is not said to have any investment or management relationship with BlackRock.
Citi’s employee 401(k) and 457(B) programs appeared to have no assets with the multinational asset manager, and both programs, totaling about $450 million, were managed by Fidelity, not BlackRock.
This result contrasted with City pensions. DX As previously reported, there was some connection to BlackRock.
A long-running records dispute with the city resulted in the former public employee’s Social Security numbers and financial records being leaked. DX It turns out the pension fund had invested money in a company with the abbreviation “BLACKROCK INC COM STK.” But the filing for 2023, the last year for which records are available, did not clearly show how much the pension fund had invested in BlackRock.
Many state government agencies have chosen to divest from BlackRock over concerns that the company discriminates against the Texas energy industry, including the Texas Permanent School Fund, which did the same earlier this year.
“The Texas Permanent School Fund (PSF) has a fiduciary responsibility to protect Texas schools by protecting and increasing the nearly $1 billion in annual oil and gas royalties administered by the Texas Land Board,” said State Board of Education Chairman Aaron Kinsey. Said In a statement announcing the sale of the sovereign wealth fund in March.
Kinsey added that he believes BlackRock’s firing was mandatory and “fully compliant with Texas law” because the company’s relationship with BlackRock “failed to comply with Section 809 of the Texas Government Code, commonly known as Senate Bill 13.”
SB 13 was passed in 2021 in response to environmental, social and governance (ESG) investment programs being adopted by companies such as BlackRock, a type of political activist investing that seeks to achieve left-leaning social change while generating profits.
The company had previously signalled it would switch from fossil fuels to alternative energy sources as part of its Climate Action 100+ initiative. DX The program has since been scaled back, according to reports.
Moreover, BlackRock has vehemently denied discriminating against Texas companies. BlackRock executive Mark McComb previously told the Financial Times that the company “has never turned its back on Texas oil and gas companies.”
SB 13 applies to some organizations that provide services to municipalities, but not to Texas cities themselves, so Dallas’ investment is not illegal. But state law and the subsequent finding by Texas Auditor Glenn Hegar that BlackRock engaged in illegal discriminatory practices against Texas oil and gas producers raise questions about the prudence of Texas municipalities having any ties with the company.
Many oil and gas companies are based in Dallas, and major corporations such as Exxon have historically held their shareholder meetings in the city.
Support our nonprofit journalism
