LINCOLN- On Thursday, the Nebraska Investment Council voted to transfer some power away from BlackRock, a nationwide firm that some conservatives have criticized for considering environmental, social, and governance, or ESG, factors in investing. The vote marked the second time the Investment Council has called for change due to concern over so-called ESG investing, concerns that have been labeled by some as "political theater."

Following a 5-0 vote, the Chicago-based Northern Trust was given management of half of the state's $7.3 billion worth of passive investments, with BlackRock still holding on to the other half. BlackRock will continue to be the manager of the state's active investments, which total out to around $40 billion, and are used for state pension funds and college savings plans.

Gail Werner-Robinson, who chairs the Investment Council, said the change in management was related to the eight-member panel's concerns about ESG, but added that she has been uncomfortable for a time with BlackRock's management of all of the state's investments. Michael Walden-Newman, however, the state investment officer, said the change in banks was not prompted by ESG policies, but rather because Northern Trust offered better rates.

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