The state comptroller needling BlackRock

Presented by JBS USA:

Oct 12, 2022 View in browser   By Liz Crampton Presented by JBS USA VERBATIM Glenn Hegar is needling BlackRock. | Source: Glenn Hegar Texas Comptroller Glenn Hegar is making the most out of an obscure job in state government. The Republican made a national name for himself this summer when he accused BlackRock, Credit Suisse and UBS of "boycotting" energy companies and barred them from doing business with the state after legislators passed a law designed to protect fossil fuel businesses. Oil-and-gas producing states like Louisiana and West Virginia have joined Texas in a conservative push against environmental, social and governance investing that calls for taking climate risks into account. "To just holistically say 'we're not going to invest in oil and gas and that means the world will transition to renewables in the next X amount of years,' is just unrealistic," Hegar said. "It's intellectually dishonest with people, and that's disturbing to me." BlackRock has pointed out it still invests in fossil fuels among the trillions of dollars in assets it manages, and has faced criticism from the left for not doing more to cut the emissions of its portfolio. While he's running for a third — and final — term as comptroller, Hegar's profile is fueling speculation about whether the farmer and former state legislator might angle for higher office, perhaps lieutenant governor or senator. This interview has been edited for length and clarity. You recently went head-to-head with banks and investment firms like BlackRock by banning them from doing business with the state because you said they "boycott" the fossil fuel sector. What impact will that decision have on state pension funds? I believe that the Legislature put in exemptions and carveouts because they wanted to make sure there's flexibility. With that, it's going to be open, it's going to be transparent. If an entity decides to divest or not divest then those are going to be discussions moving forward. I personally believe Texas is going to find that right balance to whereby pensioners are not having to sacrifice part of their returns but also on the other hand the state is making a substantial statement that while we believe in a diversity of energy portfolios, we have an extremely large wind generation capacity, we have solar capacity, we have a variety of all. We believe that all pieces are important tools in the toolbox. So is Texas essentially daring these companies to change their investment portfolios? No, I wouldn't say it is. I think that in the conversations I've had with some companies, some of the staff said, 'It's interesting, there are some companies that would not be on our list that are not boycotting oil and gas, but if you look at a lot of their publications they make it seem as though they are.' Therefore, it's almost what I deem the "big lie" because publicly they're saying one thing, but privately, 'oh, no no no, we're investing in oil and gas and we want to continue to.' I just think that's dishonest and let's be honest with everybody. Our world is touched by all of that [petroleum] and just cutting off funding for oil and gas, that doesn't solve these other issues, the logistical problems that we have to address in order to keep our daily lives and the economy functioning. And I think there's a balance that we all want to have a cleaner environment, absolutely, but we've got to be more intellectually honest with people in that conversation.   A message from JBS USA: What food producers bring to the table should sustain families—and our planet—for generations. That's why, at JBS, we are investing heavily in achieving net-zero greenhouse gas emissions by 2040. By prioritizing sustainable food production today, we're able to help ensure a thriving food system for all. Learn More   You have waded into social debates like transgender student athletes, critical race theory and student loan forgiveness, and Texas insiders believe that's because you're up for reelection this year and may have plans to run for higher office. What are your long-term political ambitions? I've served in three different capacities over time and when I ran for one I never envisioned I would run for the other. There were different reasons that led me in that direction. Really for me it's just going to be a conversation that is the same as I've always done, I'm going to have with my wife, I'm going to have with my three teenage kids, because politics impacts them. The fact is, I'm blessed, I love serving the state, I love serving the people and I'll just cross that bridge in another two to three years and decide whether it's time for Glenn Hegar to go find something different to do and whatever that is we'll figure it out in a few years. Texas has an extra $27 billion to spend in 2023, giving you an opportunity to fund the needs that you've been pushing for years. What's top of the list? Across the state of Texas, we have 7 million people that don't have high-speed broadband even if they wanted it. It's been talked about as opportunities for rural economic development but now we know it's more than economic development in rural Texas. It's about people being able to go to work every day remotely somewhere else, businesses having connectivity, also education opportunities, telemedicine. It's about people just being able to go to church. That internet connectivity is literally the highway system of this century and I believe that the state of Texas, we need to also invest in trying to come up with creative solutions and working with the private sector as supplement to the federal funding. So that's No. 1 because I think that's going to provide economic opportunities to the [parts of the] state that haven't seen it.   A message from JBS USA:   YOU TELL US GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporter Jordan Wolman. Reach us all at gmott@politico.com, dkahn@politico.com and jwolman@politico.com. Want more? Don't we all. Sign up for the Long Game. Four days a week and still free!   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.     WHAT WE'RE CLICKING — An environmental group is suing to get the Forest Service to stop dropping flame retardant into waterways. — A Virginia nonprofit's new headquarters is designed to eventually succumb to climate change. — European wind turbine manufacturers are buckling under inflation.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       A message from JBS USA: As a food company committed to feeding larger needs, at JBS we believe in sustainable food production. There's nothing more important than ensuring that our planet can continue to feed us all long into the future. Because of that, we're leading the industry in change, targeting 2040 to achieve net-zero greenhouse gas emissions and investing over $1B to reduce, and ultimately eliminate, our emissions. In doing so, we're setting a new standard for food production—one that allows sustainable practices, quality products, and affordable prices to go hand in hand. It's our way of bringing more to the table. Learn More     Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman   Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.