June 25 (Reuters) - Prominent U.S environmental

organization Sierra Club Foundation said it will move $10.5

million away from BlackRock ( BLK ) because the top asset

manager has not pressed portfolio companies enough on climate

concerns.

The money in question is tiny fraction of BlackRock's ( BLK ) $11.6

trillion in assets under management at the end of March, more

than $1 trillion of which is held in sustainable funds and

energy transition assets that the company continues to build up.

But the move underscores how BlackRock ( BLK ) faces a balancing act

on environmental and social issues with global customers who

hold a wide range of views.

Sierra Club Foundation Executive Director Dan Chu said its

change came after BlackRock ( BLK ) cut its support for shareholder

resolutions to a new low on issues such as emissions reductions,

and left the Net Zero Asset Managers initiative in January.

"They never crossed the bridge where they would say they had

an investment responsibility to fundamentally address the

climate crisis," Chu said.

BlackRock ( BLK ) has said many environmental shareholder

resolutions are overly prescriptive and that its participation

in industry climate efforts had "caused confusion" and legal

issues.

"We support clients that have made net zero commitments for

their organizations through our industry leading sustainable and

transition investment platform, research, and analytics," a

BlackRock ( BLK ) spokesperson said via e-mail when asked about Sierra

Club Foundation's decision.

Earlier this month Texas' comptroller removed BlackRock ( BLK ) from

a list of companies seen as boycotting the energy industry, a

move that will make it easier for public agencies in the state

to do business with the company.

BlackRock ( BLK ) still faces opposing pressures including in

Republican-controlled states where it remains restricted, and an

upcoming review from New York City pension funds that want more

robust emissions-reductions plans.

The Sierra Club Foundation oversees charitable activities of

the Sierra Club and has some $200 million in all. It had warned

BlackRock ( BLK ) of its concerns in 2022.

The foundation said it will move its funds to Nia Impact

Capital and to Xponance, which are both focused on sustainable

investing.

(Reporting by Ross Kerber in Boston; Editing by Lincoln Feast.)