Oklahoma Treasurer Puts Banks And Asset Managers On Notice, Moves To Purge ESG Investments From State Government

Oklahoma Investment companies were warned by Treasurer Todd Russ that they could lose access to state funds within two months if it is not proven they aren’t involved in the “eco-social and corporate governance” movement. ESG.

Russ wrote to several financial companies, including BlackRock and Vanguard asset managers, and investment banks JPMorgan Chase, and UBS, warning them that his office would enforce a state law Passed last year against Energy Boots of companies launched “without an ordinary business purpose.” Companies that are boycotting energy companies may be placed on a state-wide list. They will not be able service government investments.

“Such a listing 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,” The Daily Wire obtained the following letter. “Your company may be presumed to be boycotting energy companies under Oklahoma law if you fail to timely respond to this request.”

The letter requests that the companies confirm whether they have received it. “committed or pledged to meet environmental standards, such as reducing your greenhouse gas emissions, beyond applicable federal or state law” Whether they are members or not of similar initiatives. Vow To move portfolio companies closer to eliminating net carbon emissions.

Vanguard recently We opted to withdraw You can learn more about the initiative at “provide the clarity our investors desire about the role of index funds and about how we think about material risks, including climate-related risks,” According to a Statement. The pivot was made hours after Texas legislators had finished their work. Announcement a hearing over asset managers’ alleged mismanagement of taxpayer dollars driven by ideological motives.

Russ assumed office last month and stated in a statement that he began to compile a list for companies as soon as he was allowed. “act against Oklahoma’s interests” They endorse the ESG movement. Critics of the investment philosophy claim that the strategy seeks out outcomes in social causes, like reducing emissions and achieving diversity racially, in a way that compromises or distracts profits maximization.

“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,” Russ noted. “This questionnaire provides an opportunity for financial companies to attest to their business actions as they relate to Oklahoma. Other states are taking similar steps, and Oklahoma joins them in asserting that we will not do business with financial companies who discriminate against or boycott our energy industries and businesses.”

This action is taken against Republican treasurers Diverted some $12 billion from asset manager BlackRock last year over the firm’s promotion of the ESG movement. The Oklahoma Public Retirement System Invested BlackRock investment products accounted for approximately $7.4Billion as of two years ago. Russ stated that the fund now has $10Billion in assets, which is more than 60% of its total portfolio.

Texas passed a similar law against asset managers. “refusing to deal with” Companies involved in production and use fossil fuels “without an ordinary business purpose.” Recently, state legislators hosted a Hearing to determine the extent to which taxpayer funds were placed at risk as a result of firms’ adoption of ESG investment strategies.