BlackRock and State Street Grilled by Texas Lawmakers in ESG Debate

Firms summoned by state panel to Marshall, in eastern Texas Goal is ‘best risk-adjusted returns’ for clients: BlackRock

BlackRock’s head of external affairs, Dalia Blass, stood by the firm’s record in handling the assets of its clients in the state.

Photographer: Dylan Hollingsworth/Bloomberg

December 15, 2022 at 12:25 PM PSTTexas lawmakers grilled finance industry executives they summoned to a remote corner of the Lone Star State for a hearing, questioning whether their environmental, social and governance policies are hindering state pension investments.

The GOP-led committee on state affairs called the hearing on Thursday amid growing concern in the party that financial firms are pushing a “woke” ideology with investing rules tied to ESG issues. They summoned officials from BlackRock Inc., State Street Corp. and Institutional Shareholder Services Inc. to defend their practices before a committee made up of seven Republicans and two Democrats.