Quiver Quantitative - BlackRock (NYSE:BLK) (BLK) has successfully retained its $7.3 billion investment contract with the Oklahoma Public Employees Retirement System (Opers), following a state judge’s decision to pause the enforcement of an anti-ESG law targeting the company. The extension of BlackRock’s contract was approved at a recent meeting of the pension board, as confirmed by Joe Fox, executive director of Opers.
The decision to extend BlackRock's contract comes amid ongoing controversy surrounding Oklahoma’s Energy Discrimination Elimination Act. The law, championed by Republican Treasurer Todd Ross, mandates that state agencies and political subdivisions, such as cities, cannot contract with firms that "boycott" the fossil fuel industry. As a result, BlackRock was listed among the companies targeted for alleged energy boycotts, and state pensions were directed to divest from these firms.
Market Overview:
- BlackRock retains its $7.3 billion investment management contract with the Oklahoma Public Employees Retirement System (OPERS).
- The decision follows a judge's temporary suspension of Oklahoma's anti-ESG law targeting BlackRock.
- He anticipates data centers clustering in regions with cheaper electricity and government subsidies.
- The law aimed to restrict state funds from companies deemed to be boycotting the fossil fuel industry.
- The legal fate of Oklahoma's anti-ESG law remains uncertain, potentially impacting BlackRock's future business with the state.
- This case highlights the ongoing tension between ESG investing practices and some state governments./li>
- BlackRock's ability to retain public pension contracts in Republican-controlled states might depend on future legal battles and potential adjustments to their ESG approach.
Earlier this month, the enforcement of the law was halted by a state district court judge following a lawsuit from a retired public employee who challenged the legislation. This legal pause allowed the pension board to proceed with BlackRock's contract extension, which had been deferred from an April meeting due to the company's status on the restricted list.
BlackRock has faced significant challenges in Republican-led states that have implemented anti-ESG laws, affecting its business with public pension clients. Despite these obstacles, Opers, which manages over $11 billion in assets for more than 72,000 members, continues to invest in fixed-income and international and domestic equity index funds managed by BlackRock Institutional Trust Company, as detailed in its 2023 financial report.
This article was originally published on Quiver Quantitative