Oklahoma joins in ESG backlash, creating its own boycott list

As his “first step,” Mr. Russ despatched a letter and questionnaire to some 160 fund managers, banks and different monetary establishments to find out whether or not they need to be placed on the list of firms deemed to be boycotting power firms.

“Other states are taking similar steps, and Oklahoma joins them in asserting that we will not do business with financial companies that discriminate against or boycott our energy industries and businesses,” he stated in a news launch.

Companies that fail to answer the letter by April 1 and supply Mr. Russ with written verification that they don’t boycott Oklahoma power firms can be “presumed to be engaged in discriminating activities and will be placed on the public list of financial companies that are engaged in energy company boycotts,” he stated in the news launch.

Oklahoma public pension funds and different authorities entities can be required to divest any belongings with the listed monetary firms.

“This list is essential to supply accountability for our authorities entities, together with organizations chargeable for pension funds such because the Oklahoma Public Employees Retirement System and Teachers’ Retirement System to make sure our constituents’ tax {dollars} are solely invested in safe and verified monetary firms that adjust to Oklahoma legislation,” Mr. Russ stated in the discharge.

The transfer follows final 12 months’s passage of Oklahoma’s Energy Discrimination and Elimination Act, which requires the state treasurer to determine monetary firms taking actions “intended to penalize, inflict economic harm on, or limit commercial relations with a company because of its stance on fossil fuels and ESG criteria.”

Other states, together with Kansas, Louisiana and Texas, have adopted comparable laws banning state authorities entities from doing enterprise with — or requiring them to divest from — monetary firms recognized as boycotting power firms.

Mr. Russ in the news launch known as out OPERS, noting that the $10 billion pension fund has greater than 60% of its portfolio in BlackRock, “a well-known adversary of energy businesses,” he stated.

Joseph Fox, govt director of the Oklahoma Public Employees Retirement System, Oklahoma City, stated in a press release that “OPERS intends to fully adhere to its fiduciary responsibilities to the members and beneficiaries of the system.”

“As with any legislation affecting our system, we intend to comply with the provisions of Energy Discrimination Elimination Act,” Mr. Fox stated.

BlackRock additionally responded to the criticism, saying in a press release that it didn’t boycott power firms and that it has made greater than $200 billion of investments in conventional U.S. power firms on behalf of its purchasers.

“We look forward to engaging with the Oklahoma treasurer to discuss how BlackRock serves our clients’ interests in Oklahoma and elsewhere, including over $20 billion of investments in Oklahoma-based public companies made on behalf of our clients and managing public pensions for more than 73,000 Oklahoma beneficiaries,” a spokeswoman stated in the assertion.