June 3 (Reuters) - Texas on Tuesday removed BlackRock ( BLK )

from a list of companies seen as boycotting the energy

industry, a step the New York asset manager won only with steep

cuts to its climate ambitions.

Texas Comptroller Glenn Hegar said the decision reflected

BlackRock's ( BLK ) retreats from industry climate groups like the Net

Zero Asset Managers initiative. He also noted how the firm has

lowered its support for shareholder environmental resolutions

and backed a new Texas Stock Exchange.

BlackRock ( BLK ) "has acknowledged the real social and economic

costs, both here in Texas and globally, that come from limiting

investment in the oil and gas industry," Hegar said in a

statement.

The firm's removal from the boycott list will make it easier

for Texas state agencies and funds to do business with the top

asset manager. It could also factor into BlackRock's ( BLK ) defense in

a lawsuit brought by Texas Attorney General Ken Paxton over its

environmental record.

BlackRock ( BLK ) said it appreciated Hegar's decision. "BlackRock ( BLK )

is proud to help millions of Texans retire with dignity and, on

behalf of clients, invests over $400 billion in corporations,

local governments, energy infrastructure and other private

assets throughout the state. These investments support the

continued growth of the Texas economy," the company said in a

statement.

Hegar had added BlackRock ( BLK ) and various European managers to

his list in 2022 under a state law passed the prior year in

response to Wall Street's embrace, at the time, of environmental

and social investment priorities.

Faced with political pressure that has intensified under

President Donald Trump's administration, various BlackRock ( BLK )

rivals have also left industry climate groups and cut back on

their support for shareholder resolutions, which called for

changes like emissions cuts or limits.

Democratic leaders and climate activists have accused the

companies of going soft on their support for environmental

matters they once touted.