BlackRock’s penchant for ESG is already coming back to bite it in the behind. In its annual filing with the Securities and Exchange Commission, the financial behemoth openly admitted its ESG activism poses a serious risk to its business. In the company’s words, the House of Cards could tumble “if BlackRock is not able to successfully manage ESG-related expectations.”

They’re not wrong. The state of Texas just announced plans to pull over $8.5 billion in investments from BlackRock, citing “a fiduciary duty to protect Texas schools by safeguarding and growing the approximately $1 billion in annual oil and gas royalties” used to fund public education. Texas isn’t the first state to divest from BlackRock, but this fund is likely the biggest blow to the company so far.

I was almost excited to see BlackRock openly admit its obsession with ESG is a problem — until I realized the company seems to be more worried about its image than the well-being of its clients. BlackRock’s ability to attract and retain customers is certainly a valid concern for the company. However, it pales compared to the financial devastation ESG could cause for unsuspecting lower- and middle-class Americans who can least afford it, who are entrusting their futures to BlackRock and assuming the company has their best interests at heart.

The idea that one can simply cherry-pick investments that align with a single political agenda without sacrificing any financial opportunity flies in the face of decades, even centuries, of investing wisdom. Diversification of investments has always been the name of the game. ESG’s insistence on compliance with its climate, gender, and racial agendas necessarily excludes not just specific companies but the entire energy industry, with deeply disturbing long-term effects on the energy resources we all rely on.

While it’s too soon to have much reliable data on the long-term effects of ESG — investing, after all, is a long game — one particularly well-constructed study on university pensions offers a serious warning. Between limited diversification and ESG’s higher fees and compliance costs, researchers found that schools’ funds would suffer significantly.

With BlackRock controlling 10% of the world’s managed assets and other major firms following in its footsteps, the ramifications of continuing down the path of ESG are chilling. How many Americans’ retirement funds will be destroyed by petty political fights?

It’s clear BlackRock is trying to hide and change its language when discussing ESG. It’s ironic that BlackRock fears the exact tactics — public backlash, reputation damage, and losing clients — the ESG mob uses to coerce businesses into compliance with its political agenda.