Oklahoma Battles BlackRock To Protect State Values

Oklahoma is taking a firm stand against BlackRock, a global asset management company, to safeguard its investments from being used to support policies that conflict with local values. Gov. Kevin Stitt (R) and State Treasurer Todd Russ are leading the charge to ensure that the state’s funds reflect the interests of Oklahomans.

BlackRock, which oversees $10.5 trillion in assets worldwide, uses its financial power to push environmental, social, and governance (ESG) standards. These include policies on racial equity audits, gender pay gap analyses, and aggressive climate action. Many in Oklahoma believe these policies do not align with their community’s values.

In 2022, Oklahoma responded by passing the Energy Discrimination Elimination Act, which prohibits companies that promote ESG policies from managing the state’s investments. In May 2023, Treasurer Russ published a blacklist that includes BlackRock, barring these firms from dealing with Oklahoma’s pension funds.

However, BlackRock has fought back by mobilizing lobbyists and allies to counter Oklahoma’s legislation. Records indicate that BlackRock lobbyist Pat McFerron met with Oklahoma Insurance Commissioner Glen Mulready just days before the blacklist’s release, suggesting attempts to sway state decisions.

Additionally, Oklahoma Attorney General Gentner Drummond has shown support for BlackRock. Emails between Drummond and BlackRock officials reveal his desire to maintain a “productive corporate-state partnership,” even as the blacklist faced potential legal scrutiny.

The Oklahoma Rural Association, a lobbying group, paid Dr. Travis Roach to produce a study criticizing the anti-ESG law. Despite Roach’s limited knowledge of ESG, his study has been cited to argue against the legislation.

The source of funding for the Oklahoma Rural Association remains unclear, raising questions about potential financial backing from BlackRock or its supporters. The association supports Rep. Tom Cole (R-OK), whose political team includes McFerron’s lobbying firm, CMA Strategies.

Oklahoma now faces a critical decision: whether to yield to corporate pressure or uphold its stand against BlackRock’s influence.