Oklahoma Capitol building.
Oklahoma Treasurer Todd Russ, a vocal critic of ESG investing, has called on BlackRock, State Street and J.P. Morgan Chase to abandon three climate groups that he claims will devastate Oklahoma's economy.
In a news release on Feb. 21, Russ urged the three asset managers to withdraw from the Glasgow Financial Alliance for Net Zero, the Net Zero Asset Managers Initiative and the Net-Zero Banking Alliance, groups that he views as enemies of the oil and gas industry.
"As Oklahoma's Treasurer, my duties include safeguarding our state's financial health," he said in the news release. "State law directs me to make sure our state's money is not used to subsidize firms boycotting key industries supporting our economy, our government, our pensions and ultimately, our families."
The three asset managers are among six firms that have been banned from doing business with state pension systems and other governmental entities for allegedly discriminating against oil and gas companies. The six firms were blacklisted for factoring environmental, social and governance criteria into their investment decision-making, as required under Oklahoma's Energy Discrimination Elimination Act of 2022.
Russ commended the trio for having recently abandoned Climate Action 100+, a group of more than 700 institutional investors putting pressure on companies to reduce their greenhouse gas emissions.
"This group required big investors like BlackRock to act like climate regulators," Russ said of Climate Action 100+.
Russ goaded the firms to go further, saying Climate Action 100+ and other similar groups require actions that violate Oklahoma law.
"To regain the trust necessary to manage the state's money, firms like BlackRock should focus only on financial return, and depart from any other climate groups that require using client money to pursue ESG goals," Russ said.
BlackRock declined to comment.
Russ also called out J.P. Morgan Chase, saying that while management reached out to him personally to break the news of its exit from Climate Action 100+, the financial institution had no plans to withdraw from what he described as other "climate activist groups."
"This is confusing at best," Russ said of J.P. Morgan Chase's refusal to leave the Glasgow Financial Alliance for Net Zero, the Net Zero Asset Managers Initiative and the Net-Zero Banking Alliance.
Russ criticized the groups' goal of reaching net-zero emissions, claiming that doing so would require companies to "make dramatic and unprofitable changes that will cost somewhere between $125 trillion and $275 trillion globally."
"Financial institutions managing state money have no business asking companies to boycott industries providing Oklahoma and America our jobs, supporting our economy, creating national security and funding state finances, all things to which I am entrusted with protecting," Russ said.
Neither State Street nor J.P. Morgan Chase responded to requests for comment.
