The views of high-ranking public officials toward BlackRock are complex but seem to be shifting following the recent announcement of a Texas-based stock exchange in Dallas.

“Texas Poised for Its Own Stock Exchange: Promising Less Red Tape Than NYSE or Nasdaq. A place where the only agenda is capitalism,” Gov. Greg Abbott wrote on X, posting a link to a news report from The United Business Journal.

State Comptroller Glenn Hegar appeared equally supportive.

“With the Texas Stock Exchange headquarters in the works, backed by $120M from investors, it’s a strong signal that Texas remains welcoming to business. This move could attract more companies and jobs to the city,” Hegar posted on X with a link to an article from KXAN announcing the project.

There was a similar excitement among those driving the project from the private sector.

“Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas,” said James Lee, founder and CEO of TXSE Group, reported The Texas Tribune.

No one, however, mentioned BlackRock’s financial backing of the TXSE. An unspecified part of the roughly $120 million being used to fund the project came from BlackRock and other companies.

This fact was repeatedly highlighted by people online when TXSE was announced.

“It’s black rock [sic] though. Best believe they’re up to something evil,” X user @hartgoat responded to Abbott’s post.

When @WatcherGuru, an X account that follows financial markets, announced the TXSE, other commentators responded similarly.

“Why would anyone want to trade on an exchange run by the people that manipulate markets? They’ll manipulate your money directly into their pockets,” read one popular comment from @BossBlunts1.

“Not a good idea to be in bed with any ESG organizations,” wrote user Ken Johnson.

BlackRock has been Abbott and Hegar’s bête noire for years because of its environmental, social, and governance (ESG) policies. ESG is a type of activist investing that considers social change, like promoting diversity, along with making a profit for shareholders. BlackRock’s iteration of ESG was apparent from the company’s Climate 100+ agenda, which was intended to pivot the company’s investment away from fossil fuels toward alternative energy sources before the program was scaled back.

Abbott signed SB 13, also known as the Investment Protection Act, into law in 2021. The bill prohibits certain state entities from doing business with any company that discriminates against Texas energy producers in the oil and gas industry.

The law also charged Hegar, in his capacity as comptroller, to compile a list that identified any company that might be in violation. Subsequently, BlackRock and others appeared on Hegar’s list.

When BlackRock tweeted that it was “proud to invest in the future of Texas” in March of this year, Abbott was quick to respond.

“I signed laws that banned Black Rock from participating in the Texas financial system because of its ESG policies that were hostile to the oil and gas industry. It cut them out [of] the multi-billion dollar public finance system in Texas. They’re losing money because of it,” he wrote.

Concurrently, the State Board of Education cut ties with BlackRock over its ESG policies, The Dallas Express previously reported.

Now, just a few months later, tensions between Austin and BlackRock’s New York headquarters seem to be thawing.

The Dallas Express contacted Abbott and Hegar for comment on what caused this seeming change of heart.

Abbott’s office pointed DX to a Squawk Box interview on CNBC the governor answered a similar question. The Governor told the host that the ESG movement was “changing rapidly” and that he believed the TXSE would give more assurances to Texas companies that they could reach capital markets without having to become subject to ESG.

Hegar office’s stated that there was no connection between BlackRock divestment and TXSE.

His spokesman pointed DX to a statement from Hegar that read in part:

“I welcome [BlackRock’s] support for Texas, but this is not part of the criteria for identifying candidates for listing.”

In other words, Hegar was re-emphasizing that he was accepting of BlackRock’s investment in Texas but that that particular project was not connected to the inclusion of BlackRock on Hegar’s list of companies allegedly discriminating against the Texas oil and gas industry.

The statement continued, “Blackrock will be removed from the list of companies boycotting oil and gas as defined by state statute when they stop boycotting oil and gas as defined by state statute. Please see our FAQ document for more information on the listing process and criteria.”

UPDATE: This article was updated on July 1, 2023, at 4:30 p.m. to include comments from Abbott and Hegar’s offices.