TX Oil Regulator: "Nice To Hear Black Rock Didn't Mean - Or No Longer Believes" Stance On Oil & Gas

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Emails have revealed the high-wire act performed by major banks and the world’s biggest asset manager, BlackRock, as they privately soothe oil industry concerns about their public support for greener investment. In his annual letter to chief executives, BlackRock boss Larry Fink said that pursuing climate action policies was not about being “woke” but was about pursuing profits on behalf of clients.

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After the meeting with BlackRock staff, on 7 January 2022, the chair of the Texas oil regulator, Wayne Christian, wrote to the company expressing his relief. He said he had been concerned by the asset manager’s promotion of investments governed by environmental and social guidelines (ESG), which typically involve selling out of oil and gas stocks.

He said that it was “nice to hear that BlackRock didn’t mean – or no longer believes – many of the disagreeable things the company and … Mr Fink have said about the oil and gas industry”. In an attached letter, Christian said BlackRock’s staff had referred to “media misrepresentations” about its environmental stance and had also declared themselves “supportive” of the oil and gas industry.

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While BlackRock walked the line between greener investments and staying on the right side of oil industry advocates, US banks have faced similar pressure from oil-rich states, in one case apparently forcing a change of policy. In November, the treasurers of 15 US states – responsible for more than $600bn in funds – wrote an open letter to the banking industry in which they threatened to withdraw from financial institutions that boycott fossil fuel companies. A second freedom of information request shows that US Bank wrote to the state treasurer of West Virginia, who coordinated the letter, saying it hoped to maintain its relationship with the state, a major coal producer, for many years to come. In a note, Tim Rieder, senior vice-president of US Bank, added: “Personally, I totally agree with the [treasurers’] letter.”

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https://www.theguardian.com/environment/2022/mar/09/blackrock-privately-soothes-oil-industry-fears-over-its-new-green-credentials