Oklahoma State Treasurer Todd Russ today released an updated list of the institutions that remain on the restricted financial company list, following further analysis of their environmental, social and governance (ESG) policies. The companies include:
- BlackRock, Inc.
- Wells Fargo & Co.
- JPMorgan Chase & Co.
- Bank of America, N.A.
- State Street Corp.
- Climate First Bank
HB 2034, the Energy Discrimination Elimination Act of 2022, requires that the Oklahoma State Treasurer maintain a list of financial institutions that boycott oil and gas companies. According to the definition of boycott in the legislation, companies “without an ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company: a. engages in the exploration, production, utilization, transportation, sale, manufacturing of fossil-fuel-based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law…”
Such institutions may be excluded from doing business with the state.
“The State of Oklahoma should not be investing money with companies that boycott one of our own industries. These financial companies are using ESG policies to promote a political, social agenda instead of allowing the free enterprise system to work,” Russ said. “When a state boycotts a major industry like oil and gas, the result is less diversification of funds, which can lead to more risks and potentially lower returns for investors.”
Under state law, the Treasurer must update the list annually, but not more often than quarterly. It also states that restricted financial companies must cease engaging in boycotting energy companies within 90 days of receiving notice to avoid potential divestment with the state.
Link to revised list that will be posted to the OST website.
