Citing BlackRock as “a well-known adversary of energy businesses,” Oklahoma State Treasurer Todd Russ sent a letter and questionnaire to national financial institutions, including fund managers and banks, requesting information about their activities around a possible “boycott” of energy companies in Oklahoma.
According to Russ, the move is the first step in compiling a list of companies that Oklahoma government entities are prohibited from doing business with because of their environmental, social and governance (ESG) policies.
“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,” said Russ.
Anti-boycott statute. Last year the Oklahoma Legislature passed the Energy Discrimination Elimination Act, which went into effect last fall. The law:
- Requires the State Treasurer to determine and provide a list of what financial companies are, taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because of their stance on fossil fuels and ESG criteria;
- Mandates that any company that fails to respond to the letter and provide the Treasurer with written verification that they do not boycott Oklahoma energy companies within sixty days (April 1, 2023) from the date of the letter is 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.
Russ said Oklahoma Public Employees Retirement System (OPERS) has more than 60 percent of their portfolio totaling more than $10 billion managed by BlackRock, “a well-known adversary of energy businesses.”
Similar actions by other states. Several other states have taken similar actions around what they call energy company “boycotts,” including Kentucky and Texas.
Along the same lines, other states have pulled state pension accounts from BlackRock over ESG concerns, including Missouri, Louisiana, South Carolina, and Florida.
Similarly, last year 19 attorneys general questioned whether BlackRock is prioritizing ESG factors over financial returns. BlackRock responded that one of BlackRock’s most critical tasks as a fiduciary investor is to identify global economic trends that may affect clients’ investments, across all sectors, from healthcare to technology to energy.