Oklahoma is pushing back against BlackRock, a massive global asset management firm, to maintain control over its investments. Led by Gov. Kevin Stitt (R) and State Treasurer Todd Russ, the state is resisting the company’s push for environmental, social, and governance (ESG) standards.
BlackRock, which manages $10.5 trillion in assets, has significant power due to its control over these funds. The company promotes ESG standards, which include policies on racial equity audits, gender pay gap reports, and climate measures. However, many Oklahomans feel these policies do not align with their values and interests.
To counter this influence, Oklahoma passed the Energy Discrimination Elimination Act in 2022. This law prevents companies that push ESG policies from managing the state’s investments. In May 2023, Treasurer Russ published a blacklist of firms that includes BlackRock, banning them from doing business with Oklahoma’s pension funds.
Despite this, BlackRock has not backed down. The company has used lobbyists and other allies to challenge Oklahoma’s stance. Records show that BlackRock lobbyist Pat McFerron met with Oklahoma Insurance Commissioner Glen Mulready days before the blacklist was published. These meetings suggest efforts to influence state decisions.
Additionally, Oklahoma Attorney General Gentner Drummond has shown support for BlackRock. Emails reveal Drummond’s communication with BlackRock officials, expressing a desire to maintain a partnership, even as the blacklist faced possible legal battles.
Furthermore, the Oklahoma Rural Association, a lobbying group, paid Dr. Travis Roach to produce a study critical of the anti-ESG law. Although Roach admitted he had limited knowledge of ESG, his study was used to argue against the legislation.
The funding source for the Oklahoma Rural Association is unclear, raising questions about possible financial backing from BlackRock or its supporters. The association supports Rep. Tom Cole (R-OK), whose political team includes BlackRock lobbyist McFerron’s firm, CMA Strategies.
Oklahomans now face a significant decision: whether to yield to external pressures or maintain their stand against corporate influence.
