Earlier we wrote that Environmental, Social and Governance (ESG) investing guidelines are proof positive those who relied on the “real world” to cleanse nutty university ideology from the culture were way too optimistic regarding what’s “real.”

When the universities are turning out brainwashed minions by the thousands and those minions are entering corporate life, who’s to say what’s real and what’s fantasy?

Woke investment managers said fantasy was real and are inventing the criteria and assigning the scores that comprise the ESG regime.

This allows them to follow their ideological inclinations without fear of any nagging qualms regarding “fiduciary duty” to their clients. (Entire column is here.)

Turns out we should have been more patient.

Red state elected officials are explaining the real world to woke investment managers in no uncertain terms.

The ‘E’ in ESG is a dagger aimed at the heart of many red state economies.

These investment firms are doing their best to limit or end investment in any fossil fuels, which provide an important source of tax income for these states.

Giving your state’s money to a firm that wants to end an important sector of your state’s economy is madness.

That’s why the state of Louisiana has pulled almost $1 billion in funds from investment manager BlackRock. Missouri has pulled half a billion from BlackRock.

And the State Treasurer of West Virginia has put BlackRock on that state’s financial black list. (Details in our column here.)

Now the big kahuna has weighed in and this may finally get the attention of the wizards at BlackRock.

The National Review reports, “The Texas Board of Education is divesting $8.5 billion from BlackRock because of the asset manager’s Environmental, Social, and Governance investment philosophy.

The Texas Permanent School Fund (TPSF) will be terminating its financial relationship with BlackRock and searching for a new firm to manage its $8.5 billion of state assets, the TPSF notified BlackRock on Tuesday.”

This $8.5 billion figure is more than all the funds previously withdrawn from BlackRock’s woke management.

The reasoning for the withdrawn funds reflects that of previous Red State withdrawals.

“BlackRock’s dominant and persistent leadership in the ESG movement immeasurably damages our state’s oil & gas economy and the very companies that generate revenues for our PSF. Texas and the PSF have worked hard to grow this fund to build Texas’ schools.”

The Texas legislature previously passed a law that prohibits the investment of any state funds in firms that boycott the oil and gas industry. This action on the part of the Texas Board of Education brings it into compliance with the law.

BlackRock thinks red states should continue to park their money in investment firms whose goal is to put the state’s economy on a wind and sunshine basis.

Just like in the Middle Ages.

BlackRock, where ideology determines investment strategy, huffed and puffed and objected, “politics should never outweigh performance, especially for taxpayers.”

The size of Texas’ divestment may finally get the attention of Wall Street money managers, much like a 2X4 upside the head of a mule will get its attention.

Will Hild, executive director of Consumer’s Research, which strongly opposes leftist ESG activism observed, “Under Larry Fink’s leadership, BlackRock has been misusing client funds to push a political agenda for years.

“Nowhere was that more egregious than in Texas, where BlackRock was simultaneously trying to destroy the domestic oil and gas industry while managing funds that depended on royalties derived from that very same industry.

A more flagrant violation of fiduciary duty is difficult to imagine.”

Derek Kreifels, CEO of the State Financial Officers Foundation, agreed.

“Today’s bold step by Aaron Kinsey and the Permanent School Fund of Texas, in accordance with state law, is a massive blow against the scam of ESG. No matter whether it’s called ‘stakeholder capitalism’ or ‘transition investing,’ if the intent of an asset manager is to end America’s oil and gas industry then they can expect continued push back from conscientious public officials looking out for their constituents.”

It may come as a shock to Wall Street Plutocrats, but red state elected officials are willing to stand up for the interests of the people they represent.

ESG investing may have looked like a home run in the fever swamps of university faculty lounges, but in the real world the strategy can have real costs.

A lesson BlackRock learned in a big way.

(A related article may be found here, here, and here.)

Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Michael is an in-demand speaker with Premiere speaker’s bureau. Read Michael Reagan’s Reports — More Here.

Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of “Conservative Christian’s Guidebook for Living in Secular Times (Now With Added Humor!)” Read Michael Shannon’s Reports — More Here.

© Mike Reagan