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.

Texas’ new law bars state agencies from investing money in companies that are boycotting fossil fuels. It is putting pressure on the money managers.

BlackRock, world’s biggest asset manager, admitted to Glenn Hegar, Texas Comptroller, in a May 13th letter. This was obtained under a public records demand.

“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 further comments.

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

There is a rising debate among financial firms about how to use investments to tackle climate change.

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 sent to Hegar on May 13, JPMorgan stated that its decisions are “based on ordinary business motives”.

Representatives from JPMorgan said that the letter was consistent with previous comments made by the Wall Street bank.

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 from McVeigh Capital Management in Boston, the director of shareholder relations, stated that Reynders does not invest or support fossil fuel companies. She also said that approximately 30% of Texas’s electricity is now generated by renewables.

Egan stated that “Your attempts to make Texas an exception by partnering with us for investing in the future energy sector – is shortsighted and reckless.”