Attorney General Gentner Drummond announced on April 28 that he is questioning the lawfulness of environmental, social and governance (ESG) policies used by the three leading credit rating agencies.
Drummond, along with attorneys general from 22 other states, sent a letter last week to Fitch Ratings, Moody’s, S&P Global Ratings and the Securities and Exchange Commission. The letter outlined concerns about these agencies’ commitment to systematically include ESG considerations in their credit ratings. According to Drummond and his colleagues, such practices have led to downgrades for fossil-fuel companies based on what they describe as highly speculative ESG predictions. They say these actions could also affect states’ bond ratings.
“These downgrades were based on speculative ESG assumptions that never materialized,” Drummond said. “These agencies strayed from their own methodologies in downgrading, or threatening to downgrade, states and municipalities with fossil fuel production revenues, which is why I am stepping in to demand answers.”
The letter also raises questions about whether pushing companies toward ESG priorities may create an undisclosed conflict of interest if the same agencies offer related consulting services. It further asks whether these policies could violate antitrust laws or state bans on unfair trade practices. The coalition asked each agency to explain its ESG-driven downgrades; withdraw from or disclose any ESG commitments; revise sector-specific methodologies; eliminate or disclose conflicts related to consulting services; and certify an internal controls review.
Drummond leads the Oklahoma Attorney General’s office with a focus on combating crime, ensuring government transparency, strengthening tribal relations, and upholding the rule of law according to his official biography. He brings extensive legal experience as head of the office according to his official biography.
The Oklahoma Attorney General supports energy sector initiatives as well as educational safeguards and tougher laws against crimes like rape and drug distribution according to his official biography. The office collaborates with state and federal partners against organized crime according to his official biography, operates within public legal services according to his official biography, and maintains operations in Oklahoma as noted in Drummond’s background.
Joining Drummond are attorneys general from Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, South Carolina, Texas Utah West Virginia and Wyoming.
