Oklahoma Gov. Kevin Stitt defended the state’s anti-ESG (environmental, social, and governance) law after District Judge Sheila Stinson issued a temporary injunction.
The Energy Discrimination Elimination Act of 2022 banned financial institutions from doing business in the state if they endorse or participate in ESG policies. Oklahoma depends on the oil and natural gas industry.
The Oklahoma Public Employee Retirement System Board of Trustees claimed that disinvesting from the banks would cost $10 million.
Stinson found “that divesture or transfer of assets and investments has the potential to affect the financial soundness of the investment accounts,” leading to irreparable harm.
From Tulsa World:
During his weekly press conference at the Capitol, Stitt said he thought it was “pretty clear” that the treasurer has the authority to enforce the act, and he said he was disappointed by the ruling.“We want our pension funds investing public dollars for the benefit of those pensions,” Stitt said. “(But) sometimes you’ve got these ESG-minded funds that might be invested in or pushing folks for political purposes or some kind of political agenda, and that’s why the Legislature passed that bill.“I don’t know how anybody could argue that we’re not going to let companies come into Oklahoma and attack our oil and gas industry, and that’s what the treasurer is trying to do, and we certainly support the treasurer in that effort.”
Stitt added: “We’re not going to let companies come into Oklahoma and attack our oil and gas industry. That’s what the treasurer is trying to do, and we certainly support the treasurer in that effort.”
Treasurer Todd Russ listed BlackRock, Wells Fargo, JPMorgan Chase, Bank of America, State Street, and Climate First Bank. He took the case to Oklahoma Attorney General Genter Drummond but he didn’t take it up.
Russ proceeded with the case by himself. He wanted to appeal the decision, but Drummond pushed Russ aside and fired lead attorney Cheryl Plaxico.
Russ said: “When asking the Attorney General to take my case, he refused. So, I was left with no other choice but to choose who I was most comfortable representing me. My constitutional office as the State Treasurer makes me party to the lawsuit, and therefore I don’t believe my decision-making authority can be removed. Certainly, I am disappointed with the outcome but have several facts for appeal. I had hoped to have the Attorney General as my defender all along.”
The action led to accusations of a “cozy relationship” between Drummond and BlackRock, one of the companies Russ listed that endorses ESG policies.
Drummond responded to Russ:
“It is extremely disappointing that the counsel hired by Treasurer Russ was unable to secure a favorable ruling in defense of Oklahoma’s anti-ESG law,” Drummond said. “Because of this failure, the law is now on hold and at risk of being struck down entirely. Oklahomans deserve better.”Drummond said he had initially chosen a separate firm to serve as outside counsel on the matter but deferred to Russ after the treasurer insisted on selecting his own attorney to defend the law. The Attorney General said he now regrets extending that professional courtesy.“Treasurer Russ was insistent that he be allowed to choose his own counsel to defend the lawsuit, and I acquiesced,” said Drummond. “No longer will I allow professional courtesy to influence my decisions on this matter. Effective immediately, I have terminated Treasurer Russ’s hand-picked counsel and removed the treasurer from any decision-making role in the lawsuit. My office will handle all elements of the case moving forward.”
Stitt took Russ’s side at the press conference:
“When we saw the attorney general’s press release, the thing that seemed odd to us was that the treasurer had asked the AG to represent him in that case and the attorney general turned that down,” he said. “That’s why he went to get outside counsel.”In separate remarks, Stitt reiterated his commitment to cutting income taxes paid by Oklahomans and to putting the state on a “path to zero” income taxes in coming years.“I am for any tax cut that I can get the House and Senate to sign and get on my desk,” he said. “If I (could) write the bills, we would probably already have a zero percent income tax rate.”
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