The State of Oklahoma is pressing more than 150 fund managers and financial institutions on their ESG stance, specifically those that boycott energy companies—with an eye toward boycotting the Sooner State’s use of their services.
It’s the latest salvo in a series fired by Republicans against the investment strategy. In late January, a coalition of red state attorneys general filed a lawsuit to stop the Labor Department’s ESG regulation days before its implementation, and just last week Republicans in the U.S. House of Representatives announced the formation of a working group to “combat the threat to our capital markets posed by those on the far-left pushing environmental, social, and governance (ESG) proposals.”
Discrimination Elimination ‘Act’
In a letter accompanying a fairly extensive questionnaire, Oklahoma State Treasurer Todd Russ notes that, acting in accordance with “…the Oklahoma Energy Discrimination Elimination Act of 2022, 74 O.S. §§ 12001-12006, the Oklahoma State Treasurer (‘OST’) is to prepare and maintain a list of financial companies that boycott energy companies.”
The letter—which requests a response within 60 days—notes that, depending on the response (or non-response, which is presumed to indicate that the firm IS boycotting energy companies)—is part of developing the State of Oklahoma’s list of financial companies that boycott energy companies. That list, in turn, “will prohibit Oklahoma governmental entities from investing in, and may potentially require divestment from your company, your company’s affiliates and subsidiaries, or investment vehicles affiliated with your company, its affiliates or subsidiaries.”
In a press release announcing the outreach, Russ explained “This list is crucial to provide accountability for our government entities, including organizations responsible for pension funds such as the Oklahoma Public Employees Retirement System (OPERS) and Teachers Retirement System (TRS) to ensure our constituents tax dollars are only invested in secure and verified financial companies that comply with Oklahoma law.” According to that release, “OPERS alone has more than 60 percent of their portfolio totaling more than $10 billion managed by BlackRock, a well-known adversary of energy businesses.”
