By Ross Kerber

(Reuters) – BlackRock Inc (NYSE:), JPMorgan Chase & Co (NYSE:) and other top financial firms have told a Texas official they are not boycotting energy companies, responding to a request for information that could determine if they are able to continue to manage state funds.

A new Texas law prohibits states from investing funds in firms that boycott fossil fuel companies. This puts pressure on money managers.

BlackRock, the largest asset manager in the world, has acknowledged that it is part of various initiatives to reduce greenhouse gas emissions, including the well-known Net Zero Asset Managers Initiative.

“Notwithstanding, our investment decisions are governed strictly by our fiduciary duty to clients, and that duty requires us to prioritize our clients’ financial interests above any commitments or pledges not required by law,” according to the letter, signed by BlackRock’s head of external affairs, Dalia Blass.

BlackRock previously lobbyed Texas officials. It claimed it supports the oil-and gas industry, but did not mention its fiduciary obligation. BlackRock declined to provide further information.

BlackRock said it had $24 Billion in Texas-related pension assets and that $8.3 Billion of Texas funding was available for projects such as utilities and carbon capture systems.

Hegar’s spokesperson did not respond immediately. According to Hegar, a decision about which companies will boycott the sector’s energy is expected by Sept. 1.

The debate is growing between financial institutions and climate-change experts about the best way to invest.

JPMorgan, a top Wall Street bank, stated that it doesn’t lend money in risky situations like mountaintop mining and arctic drilling. However, it said that it has billions of dollars to engage with both fossil-fuel-based energy companies as well as green technology companies. In a letter to Hegar dated May 13, JPMorgan stated that its decisions are “based on ordinary business motives”.

JPMorgan representatives said that the letter was in keeping with comments previously made by Wall Street banks.

Reuters reviewed more than 20 responses from companies to Hegar’s information request. Most said they don’t boycott Texas-based energy companies.

John Alban (CEO of Cushing Asset Management in Dallas) replied to the question about the boycott by saying “Hell No”.

Maria Egan (director of shareholder engagement, Boston-based Reynders McVeigh Capital Management) stated in a letter that they do not invest in fossil fuel companies, and that around 30% of Texas’ electricity comes now from renewables.

Egan said, “Your attempts to create an anomaly with our company for doing exactly the same thing Texas is doing-investing in future energy technology – seem shortsighted and irresponsible.”