Environmental, social, and governance; prohibiting use of certain investment criteria by governmental entities, political subdivisions, businesses, or persons. Emergency.
If enacted, SB974 would impact various aspects of state law, altering how public sector contracts are awarded and how organizations interact with employees. The bill mandates that any entity competing for state contracts must confirm that their employee evaluations will not be influenced by ESG or ETI policies. This change is anticipated to streamline the contracting process by eliminating what proponents argue is subjective criteria that could influence hiring and operational decisions.
Senate Bill 974 (SB974) proposes significant changes to the way environmental, social, and governance (ESG) criteria are utilized in Oklahoma. Specifically, it seeks to prohibit all governmental entities, political subdivisions, and businesses from using ESG or economically targeted investment (ETI) criteria. This prohibition extends to hiring, firing, evaluations of employees, and the awarding of state contracts based on these criteria. The bill aims to prevent any evaluation or judgment based on ESG-related factors, positioning itself against what supporters view as an unnecessary intrusion of social and environmental considerations into business practices.
One of the primary points of contention surrounding SB974 is the debate over the role of ESG considerations in business and government operations. Supporters of the bill argue that ESG criteria represent a form of regulatory overreach that could hinder business efficiency and economic growth. Conversely, opponents express concerns that removing these criteria could permit discriminatory practices to flourish under the guise of neutral hiring and evaluation processes. Critics suggest that the bill undermines efforts to promote social responsibility and environmental sustainability, which are increasingly recognized as important factors in long-term economic health.