Barclays is the Latest Firm to Face Anti-ESG Wrath in Oklahoma

Oklahoma State Treasurer Todd Russ announced on Friday that Barclays Plc would be added to his list of companies that he claims have boycotted the fossil fuel industry — a gesture that aims to limit the governmental business the bank can conduct in the state.

The Republican treasurer’s office justified the move by saying the British bank has “publicly committed to boycott fossil-fuel companies,” according to an emailed statement. Barclays’ 2024 climate change statement says the bank does not provide project financing, or other direct financing to energy clients, for upstream oil and gas expansion projects or related infrastructure.

According to the 2022 Republican-backed law, Oklahoma state agencies and political subdivisions can’t contract with a company unless it provides a written verification that it doesn’t boycott energy companies.

Russ’ list of firms that his office considers to engage in a boycott already included BlackRock Inc., Wells Fargo & Co., JPMorgan Chase & Co. and Bank of America Corp. The companies on the list have seen their public finance businesses dwindle in Oklahoma since the legislation went into effect.

Barclays is ranked as the 10th biggest underwriter in the muni market so far this year, according to data compiled by Bloomberg.

“Oklahoman’s tax dollars and state pension funds will not be used to sabotage the state’s vital fossil-fuel based industries, whether those strategies target current investment policies or long-term goals,” the treasurer’s office said in a statement.

A spokesperson for Barclays declined to comment.

A study published in April from the Oklahoma Rural Association — a group representing smaller communities — found that the state is incurring “avoidable” costs as a result of the law.

A Republican-introduced bill in the legislature would narrow the scope of Oklahoma’s law so local governments aren’t affected.