Oklahoma pushes forward with efforts to reinstate an anti-ESG law

December 13, 2024

Oklahoma’s Attorney General has appealed to the state’s Supreme Court to reinstate an anti-ESG law which was previously struck down in the ruling of a lower court.

Gentner Drummond has appealed a court ruling that blocked the enforcement of the Oklahoma Energy Discrimination Act, which prohibits public pension funds and state contracts from engaging with financial firms accused of discriminating against the oil and gas industry.

Oklahoma District Court Judge Sheila Stinson blocked the rule, deeming the act vague and unconstitutional under state law. However, Drummond has since filed to appeal to reinstate its enforcement.

The rule to block the enforcement of the act was enacted following a lawsuit filed in November 2023 by Don Keenan, a retired Oklahoma public servant, who argued that the law put his pensions savings with the Oklahoma Public Employees Retirement System at risk.

Drummond took over the case and removed state Treasurer Todd Russ as a decision-making authority in the lawsuit after he failed to defend the enforcement of the act.

Drummond called the result of Russ’ actions “extremely disappointing”, adding that the Treasurer’s poor judgement has created unnecessary obstacles for the state’s defence of the law.

Drummond said: “There is a great deal of lost ground to make up on this litigation after the Treasurer and his hand-picked legal counsel failed in district court,

“I will not let that failure deter my efforts to protect Oklahoma’s oil and gas industry from discriminatory practices by financial entities kowtowing to a radical environmental agenda. My office is committed to a vigorous defence.”

In addition to the Oklahoma Energy Discrimination Act, the state has advanced another anti-ESG law. The Senate Bill requires the state treasurer to obtain the opinion of the Attorney General when the treasurer and state pension system disagree over an exemption.

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