A judge in Oklahoma, a major oil and gas producing state, blocked a state law prohibiting state pension systems from contracting with more than a dozen companies that limit investment in the oil and gas industry.
In a filing Tuesday, Oklahoma County District Court Judge Sheila Stinson issued a temporary injunction blocking enforcement after finding retiree Don Keenan is likely to win his lawsuit alleging the law violates the state constitution, and is too vaguely written, Reuters reported.
Oklahoma's 2022 law is among dozens of GOP-sponsored bills that aim to free fossil fuel companies from climate-driven constraints adopted by some Wall Street firms, Reuters reported.
The Oklahoma law would hinder state agencies from investing with financial firms that boycott energy companies for no "ordinary business purpose" because they engage in "fossil-fuel-based energy" and do not intend to meet environmental standards, The Hill reported.
Oklahoma State Treasurer Todd Russ included BlackRock, Wells Fargo, JPMorgan Chase, and Bank of America among the 13 prohibited companies on the list, The Hill reported.
Don Keenan, former president of the Oklahoma Public Employees Association, challenged the legislation, arguing it violates the state constitution and free speech rights, The Hill reported.
In her ruling, Stinson said the law appears to be aimed at countering the "political agenda" of financial companies and to "assist the economic status of the oil and gas sector," The Hill noted.
A statement from Russ said he was "looking out for the financial interests of Oklahoma's citizens and industries," Reuters reported.
"This ruling is not going to stop the fight for Oklahomans against activists using ESG [environmental, social, and governance] in the state," Russ said, adding that he's preparing to appeal the order.
Bryan McGannon, managing director of sustainable investment organization US SIF, said the judge's action shows the anti-ESG laws are not in beneficiaries' best interests.
"Financial professionals, ultimately, should have the freedom to make the best investment choices for their beneficiaries without partisan legislative interference," McGannon told Reuters.
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