Oklahoma Treasurer Praises J.P. Morgan Chase for Retreat From ESG, DEI

Oklahoma State Treasurer Todd Russ praised J.P. Morgan Chase for pulling back from ESG and DEI commitments, saying the bank had refocused its business practices on fiduciary duty and financial returns for public investments.

In a press release, Mr. Russ said Oklahoma had for years raised concerns that taxpayer dollars and public pension assets were being managed under commitments extending beyond traditional fiduciary responsibilities. He noted that when Oklahoma's Energy Discrimination Elimination Act was enacted, many financial institutions had adopted climate commitments that raised questions about whether decisions involving public funds were being made for an ordinary business purpose or for political objectives.

Mr. Russ said J.P. Morgan had, over the past three years, taken a hard look at its prior commitments, and credited the bank with dismantling climate-focused initiatives that he said expanded its influence over capital allocation without a clear pecuniary basis. He said the bank had returned to objective financial decision making aimed at maximizing returns rather than pursuing activism.

Mr. Russ said the changes could open the door to renewed partnerships between Oklahoma's government and J.P. Morgan, and stated his office would review similar progress by other financial institutions seeking to restore business relationships with the state.