(The Center Square) – A new report says BlackRock, the world’s largest investment firm, is still acting against fossil fuel companies in violation of Texas law, even though the company was recently removed from the state’s boycott list.

Texas passed a law in 2021 called Senate Bill 13. It’s aimed at preventing financial companies from punishing or limiting business with fossil fuel producers if the reasons go beyond what federal or state law requires. The goal is to protect Texas energy jobs and companies from pressure tied to environmental activism.

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Companies on the list are barred from doing business with the Texas state government.

BlackRock was on that boycott list but was removed earlier this year. The company said it had changed its approach and was no longer targeting fossil fuel companies.

However, the American Energy Institute and Consumers’ Research say BlackRock is still pushing companies to meet climate goals that go far beyond the law.

Their joint report points to BlackRock’s voting rules that push companies to set so-called “science-based” net-zero emissions targets; these goals aim to phase out fossil fuels by 2050.

“It’s important, because as they try to escape the consequences of those actions, people need to be served by all the facts,” Will Hild, executive director of Consumers’ Research, told The Center Square in a phone interview. “This report puts an end to the mess that BlackRock is currently spreading – that they’ve corrected or ended their actions boycotting or punishing the oil, gas and other industries they think need to eliminate their carbon emissions.”

The report also says BlackRock supports shareholder proposals that would restrict fossil fuel use and even impact farming and cattle production. It notes that BlackRock still refuses to invest in many coal companies and is being sued by the Texas Attorney General over claims it is working with other firms to limit fossil fuel production.

Jason Isaac, CEO of the American Energy Institute, said in a statement that the 2021 Texas legislation “was designed to protect the livelihoods of millions of Texans and ensure that our capital markets remain accountable to the law rather than to ideologically driven activist campaigns.”

Isaac added that BlackRock’s removal from the boycott list “demonstrates how quickly the commitment to that principle can be undermined when powerful corporations deploy public relations campaigns to obscure their true behavior.”

Isaac further told The Center Square in a statement: “BlackRock never stopped discriminating against American energy companies, it has simply gotten better at disguising it. The evidence shows they still pressure companies to adopt radical net-zero policies, punish directors who don’t comply, and push shareholder demands that would devastate Texas jobs and agriculture. Any action to penalize fossil fuel production is a violation of state law. It’s time policymakers held BlackRock accountable for continuing to weaponize trillions of dollars against the industries that power our economy.”

Texas law defines an energy boycott as any action that harms or limits business with fossil fuel companies based on demands that go beyond existing laws.

The report also notes that BlackRock’s recent exit from some climate groups doesn’t impact how the company pressures fossil fuel producers. BlackRock still participates in these groups through affiliates and keeps similar policies in place, the report said.

The report recommends Texas officials review BlackRock’s actions and consider putting the company back on the boycott list to protect the state’s energy industry.

Hild said he hopes Texas lawmakers take the report seriously and act accordingly.

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“Texas has taken a strong position leading the way in pushing back against BlackRock’s abuse of the American economy,” he said. “When they see the truth – that BlackRock is still engaging in that behavior that violates Texas law – we expect them to put the company back on the list.”

“BlackRock may be doing a lot to cozy up to Texas, whether it’s investments in natural gas or the new stock exchange,” he added. “But those aren’t reasons to let them skirt Texas law.”