BlackRock, once the leading champion of ESG investing, has shifted its stance and now supports shareholder proposals urging companies to reincorporate in Texas. The move marks a notable reversal for the asset manager, which had previously emphasized environmental, social, and governance priorities in its engagement with portfolio companies.

Under CEO Larry Fink, BlackRock built its reputation as the most influential voice in sustainable investing, using its massive voting power to push corporations toward climate disclosures and social responsibility initiatives. The latest position signals how political and regulatory pressures in states like Texas have reshaped the calculus for large institutional investors.

The change reflects a broader backlash against ESG strategies, with Texas positioning itself as a business-friendly alternative to Delaware, where most U.S. companies are incorporated. BlackRock's endorsement of reincorporation proposals adds significant weight to a growing trend that has already seen several high-profile firms reconsider their corporate domicile.

The shift underscores how the once-dominant ESG movement has fractured, with major financial players recalibrating their approach in response to legal challenges, political opposition, and shifting investor demand across the country.