Oklahoma is taking a stand against BlackRock, an international asset management corporation, over the control and use of the state’s investments. Led by Gov. Kevin Stitt and State Treasurer Todd Russ, Oklahoma passed the Energy Discrimination Elimination Act in 2022, which bans companies pushing environmental, social, and governance (ESG) standards from managing the state’s investments.
BlackRock, which manages $10.5 trillion in assets globally, has used its financial influence to push ESG standards. These include policies on racial equity audits, gender pay gap reports, and radical climate measures. The people of Oklahoma, however, have expressed strong opposition to their investments being used to support these left-leaning policies.
The state’s legislation culminated on May 3, 2023, when Treasurer Russ published a blacklist of firms, including BlackRock, that were prohibited from handling Oklahoma’s pension funds. This move aimed to protect state investments from being leveraged to support policies contrary to the values and interests of Oklahomans.
BlackRock responded by mobilizing lobbyists and other allies to challenge the blacklist. Oklahoma Insurance Commissioner Glen Mulready, for instance, met with BlackRock lobbyist Pat McFerron just days before the blacklist was published. Records show a close relationship between Mulready and McFerron, whose lobbying firm, CMA Strategies, played a role in Mulready’s election.
Oklahoma Attorney General Gentner Drummond also engaged with BlackRock officials. Emails revealed Drummond’s supportive communication with BlackRock, where he expressed a desire to maintain a “productive corporate-state partnership,” even as the blacklist faced potential legal challenges.
Moreover, the Oklahoma Rural Association, a lobbying group, paid Dr. Travis Roach, an economics professor at the University of Central Oklahoma, to produce a study criticizing the anti-ESG law. Despite admitting limited knowledge about ESG, Roach’s study was used to argue against the legislation.
The funding behind the Oklahoma Rural Association remains unclear, raising questions about potential financial backing from BlackRock or its supporters. The association has shown support for Rep. Tom Cole, whose political team includes BlackRock lobbyist Pat McFerron’s firm, CMA Strategies.
Oklahomans now face a critical decision: whether to succumb to external pressures or to maintain their stand against corporate influence.
