(The Center Square) – BlackRock will direct $1 million toward financial literacy efforts in the state as part of a resolution tied to the state’s cease-and-desist order against the investment management company over its environmental, social, and governance (ESG) practices, Mississippi Secretary of State Michael Watson announced Tuesday.
“By bringing this action, I have now assured that the money Mississippians invest with BlackRock is managed consistent with their objectives,” Watson said in a press release. “I’ve had concerns about BlackRock’s ESG practices, and I am pleased to announce we have resolved our outstanding issues. Thanks to the work of the Securities team at the Office of the Secretary of State on behalf of the people of Mississippi, BlackRock has committed to spend $1,000,000 to enhance financial literacy efforts in the state.”
Watson’s office issued an administrative order against BlackRock in March 2024, alleging violations of Mississippi securities law related to the company’s ESG investing practices.
As part of the resolution, Watson’s office withdrew the order while reserving the right to issue another one in the future if BlackRock does not continue what the office described as “course correcting measures.”
Watson’s office said BlackRock withdrew from Climate Action 100+ and the Net Zero Asset Managers initiative as part of the process. The company also removed sustainability characteristics and ESG ratings from some fund product pages.
BlackRock also agreed to continue providing some investors the ability to direct proxy votes connected to securities in which they hold an interest, according to Watson’s office.
“We’re pleased to partner with Secretary Watson to support financial literacy efforts for kids across Mississippi, a BlackRock spokesperson said in a statement provided to The Center Square. “Helping Americans experience financial well-being is core to who we are at BlackRock.”
The announcement comes weeks after Mississippi lawmakers approved expanded financial literacy requirements for public school students.
Under Senate Bill 2294, Mississippi middle schools will begin offering financial literacy instruction starting in the 2027-28 school year. Beginning with the graduating class of 2032, Mississippi high school students will also be required to earn a half-credit Carnegie unit in personal finance to graduate.
Lawmakers included $120,000 in K-12 appropriations tied to the financial literacy expansion.
Mississippi previously received an “A” grade in the Center for Financial Literacy at Champlain College’s National Report Card on State Efforts to Improve Financial Literacy in High Schools.
Attorney General Lynn Fitch praised the contribution in a post on X.
“Financial literacy is the life skill that gives us the power to fulfill our dreams,” Fitch wrote. “Thank you, MCEE and BlackRock, for investing in Mississippi’s future!”