In 2022, BlackRock, under the leadership of Larry Fink, stood as a staunch advocate of ESG investing, pushing the narrative that “climate risk is investment risk.” But in a stunning reversal, BlackRock recently announced its withdrawal from the Net Zero Asset Managers initiative, a U.N.-backed effort long championed by Fink. The Wall Street Journal aptly called it a “remarkable U-turn” for a company once seen as the poster child of ESG. As it turns out, ESG wasn’t a shield for investments – it was the investment risk.
Adding another layer to this evolving story, BlackRock holds a significant stake in Third Coast Bancshares, Inc., the holding company of Third Coast Bank, where State Representative Dustin Burrows of Texas, through his spouse, also owns shares. BlackRock’s institutional position in the bank, valued at approximately $24.2 million (with 783,010 shares at $30.91 per share), dwarfs the holdings of Burrows’ spouse, which amount to between 1,000 and 4,999 shares, valued between $30,910 and $154,545 at the same stock price. This shared connection to the bank paints an intriguing picture of how local and global financial players find themselves entwined.
Burrows, a Lubbock-based attorney and member of the Texas House of Representatives since 2015, has not been without controversy. He first rose to political prominence through his leadership as chair of the House GOP Caucus, but a scandal in 2019 significantly tarnished his reputation. Alongside then-Speaker Dennis Bonnen, Burrows was accused of conspiring to target fellow Republican House members in upcoming primaries, an action perceived as a betrayal by many in his party. The fallout led to Burrows stepping down from his caucus leadership role and left lasting scars on his political relationships.
Fast forward to 2024, and Burrows’ ambitions for the Texas House speakership reignited controversy. After losing the Republican caucus nomination to Rep. David Cook, Burrows sought Democratic support along with a faction of Republicans – a move that many conservatives saw as a breach of party unity, deepening his reputation as a polarizing figure in Texas politics.
Meanwhile, Elisabeth Burrows, his spouse, comes from a South Texas family with deep roots in cattle ranching and the oil and natural gas industries, but her professional career details remain limited. While Burrows’ financial ties to Third Coast Bank are comparatively modest, his association with the same institution that BlackRock holds a multimillion-dollar stake in raises interesting questions about the intersections of global finance, local politics, and personal investments.
With BlackRock backing away from its ESG commitments and Burrows navigating turbulent political waters, the unraveling story of ESG’s golden age and its Texas ties could reveal far more than meets the eye. From Wall Street boardrooms to the chambers of the Texas Legislature, the implications are likely to echo for years to come.