Oklahoma aims at Wall Street ESG activists.

Oklahoma Takes Action Against Wall Street Firms

Protecting Jobs and Energy for the State

Oklahoma is the latest state to take a stand against Wall Street firms that are hurting companies essential to providing jobs and energy for the state. Treasurer Todd Russ announced on Wednesday that 13 financial institutions, which have been deemed to be discriminating against Oklahoma’s energy industry, will be banned from doing business with the state. This means they will lose access to billions of dollars in municipal fees, including managing state pension money, in accordance with a recently passed Oklahoma law.

“We’re definitely a large energy-producing state,” Russ told The Epoch Times. “The [law’s] language is pretty clear, that we don’t intend to support people that are going to work against industries in a state like ours.”

Championing ESG Movement

In recent years, many of America’s largest banks and asset managers have championed the Environmental, Social and Governance (ESG) movement, taking action against fossil fuel companies, promoting social-justice causes, and in some cases, denying financial services to disfavored industries like firearms. However, in May of 2022, Oklahoma Gov. Kevin Stitt signed House Bill 2034, the Energy Discrimination Elimination Act, which requires the state treasurer to deliver to all state entities a list of financial companies that boycott energy companies.

The Institutions on the List

The institutions that Russ placed on the list include BlackRock, Wells Fargo, JPMorgan Chase, Bank of America, State Street, Grosvenor Capital Management, Lexington Partners, FirstMark Fund Partners, LLC, Touchstone VC Global Partners, WCM Investment Management, William Blair, Actis LLP and Climate First Bank. They have all been given an opportunity to respond.

Protecting the State’s Economy

“The energy sector is crucial to Oklahoma’s economy, providing jobs for our residents and helping drive economic growth,” Russ stated. “It is essential for us to work with financial institutions that are focused on free-market principles and not beholden to social goals that override their fiduciary duties.”

According to a report by Harvard Law School, as of March this year, at least seven states have enacted laws or regulations to bar fund managers from considering ESG factors when investing state money. At least eight states have enacted laws to prevent their state from doing business with companies that discriminate against industries considered “disfavored” by the ESG movement, and three states have done both. Conversely, two states, Illinois and Maryland, have enacted laws that require ESG considerations when investing their state pension and other funds, and six states have laws or regulations that ban investments in ESG-disfavored industries.

State Actions in Favor or Against ESG

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