Various Texas pension plans have completed accounting for investments in 10 companies tagged “fossil fuel boycotts” by the Texas Comptroller pursuant to Senate Bill (SB) 13.
With the Sept. 23 deadline, the two largest pension schemes — Teacher retirement system (TRS) and retirement plan (ERS) — 10 out of 10 on the list disclosed direct or indirect holdings.
That list consists of:
- black rock
- BNP Paribas
- Credit Suisse Group
- danske bank
- jupiter fund management
- Nordea Bank
- Schroeder PLC
- Svenska Handelsbanken
- UBS Group
there is more list Over 300 funds deemed to spur investment in fossil fuels.
TRS represents 1.6 million members statewide, unpaid liability $30,074 per member, $50.6 billion in total. The pension amortization period, the time it takes to pay off the promised benefits at current funding levels, is 27 years for him.
agency’s investment portfolio It is updated frequently by TRS and changes are published monthly. According to that document, TRS currently has his $687 million in those companies, including his $608 million in BlackRock.
The value of that dollar fluctuates as often as the stock price changes — this happens all the time.
BlackRock has become the face of this problem, firstly because of its sheer size and influence, and secondly, because of its pursuit of a net-zero future that involves moving away from fossil fuel power generation. It follows frequent public statements by company executives.
Earlier this month, BlackRock CEO Larry Fink said: declaration With the former president of the same name at the annual meeting of the Clinton Global Initiative.
ERS has approximately 395,000 members and $37,257 in outstanding debt per member. Its amortization period is infinite.texas legislature rebuilt ERS builds a stronger financial base by moving out of a defined benefit plan and into a cash balance plan for new entrants.
As of August 24, ERS had approximately $40 million in direct holdings in 10 companies. chart offered to The Texan.
of Texas County and District Retirement Programshas 320,000 members and does not report direct holdings in 10 companies, but has indirect investments in each.same thing Texas Municipal Retirement System.
These pension plans will begin selling their holdings and transferring their capital, which must be reported by 5 January 2023. The Comptroller said the SB 13 list will be updated quarterly, with additions and deletions made as needed. .
not a pension texas Permanent School Fund (PSF) is an investment agency with a $56 billion endowment whose profits help finance the state’s public schools.In total, PSF invested $88.5 million in Possession Associated with companies on the SB 13 list as of August 31, 2021.
a letter The General Land Office (GLO) reported to the supervisor that the School Land Board, which oversees “parts” of the PSF, never invested directly or indirectly in these companies under its supervision. claim. However, the GLO added that the School Land Board “has made several investments in energy-related private equity funds with BlackRock that have been exempt from sale.”
of response, Hegar objected to the GLO’s judgment regarding these particular funds. “[I]It’s important that state agencies make their own decisions about the policies that underlie the laws at issue,” he said.
“However, given the importance of these underlying policies, state agencies should carefully consider all available options and invest where possible to achieve investment objectives within appropriate fiduciary standards. I believe we need to consider alternative approaches.”
Passed last year SB13 Prohibit public pension investments from flowing to companies perceived to be boycotting fossil fuel companies.In between standard The auditor used to narrow down problem companies was whether they had signed two of the three major climate and net zero agreements. Climate Action 100+, Climate Pledge, and Net Zero Coalition.
A whole set of issues under the broader umbrella set by the environmental, social and governance movements clashed energy policy and capital movements head-on. Texas and its Republican officials say the state’s extreme We aim to protect the vital oil and gas industry.