Oklahoma
Treasurer Todd Russ is planning to put financial institutions that “boycott” energy companies on a blacklist that will bar those firms access to billions of dollars from government entities.
Russ announced on Wednesday that his office has sent letters and questionnaires to dozens of firms — including giants like BlackRock, Vanguard, and JPMorgan — asking about their relationships with energy companies. The move is the latest in a Republican effort
to push back
against corporate
environmental, social, and governance
initiatives.
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The institutions will have 60 days to respond to the Treasurer’s office or face blacklisting. Russ said the answers will help determine if Oklahoma pension funds, like its public retirement system, are tied to companies that are adversarial to the energy industry.
“I took office on Jan. 9 and began compiling a list of companies, banks, and other entities that act against Oklahoma’s interests because of their ESG stance,” Russ said. “It is my responsibility to ensure Oklahoman’s tax dollars will not be used to enrich organizations that act counter to our taxpayers’ interests and our values. This questionnaire provides an opportunity for financial companies to attest to their business actions as they relate to Oklahoma.”
The latest foray in the GOP battle against ESG is very similar to actions other Republican-led states have taken against certain financial firms.
Earlier this year, Kentucky’s state treasurer, Allison Ball,
released a list
of nearly a dozen financial firms it accuses of boycotting energy companies and warned that the state could divest from them in a matter of months.
The firms will be subject to divestment after 120 days, although Ball said she hopes they decide to change their policies, so the state won’t have to do so.
“We’re a fossil-fuel producing state, so it’s very important to us,” Ball said.
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West Virginia led the GOP charge against ESG last year when it deemed five financial institutions ineligible for state banking contracts on the grounds that they boycott fossil fuel companies. The shift away from fossil fuels is part of the larger corporate move toward the prioritization of ESG goals.
ESG proponents argue that is a way that finance and business can help reform society, such as by mitigating the effects of climate change. Those who oppose ESG say it distorts the economy, as well as America’s culture.
