What to Expect At GOP Debate: Big Oil Funded Talking Points Attacking American Business

Republican Smears on Companies As “Woke” Part of Larger Campaign By Big Oil Companies To Protect Dying, Expensive 20th Century Fossil Fuel Industry

The Hill: Documents Reveal How Fossil Fuel Industry Created, Pushed Anti-ESG Campaign

Washington, D.C. – As Republicans gather for tonight’s presidential debate, we’ll undoubtedly hear Republicans push their extreme agenda with attacks on American businesses making environmentally responsible investments or considering legitimate financial risks such as extreme weather or a company’s record of polluting

Even though polling shows it to be bad political strategy, Republican presidential candidates have made this a hallmark of their campaigns—and there’s one big reason: it’s part of a coordinated campaign by Big Oil companies and their allies to stop corporate America from moving away from dirty energy sources like fossil fuels.

Here are some key facts to remember ahead of tonight’s debate: 

Fossil fuel companies are driving Republicans’ charge against “woke” corporations.

• Reporting has shown that fossil fuel companies are “the major driver in the fight against sustainable finance.” 
• Republicans’ attacks “can be traced to Texas, where in 2020 oil executives began complaining that big banks like JPMorgan had stopped lending them money.”
• 18 GOP-led state legislatures have banned corporations from considering environmental, social, and corporate governance. 

Republicans are working to mislead by pushing an extreme agenda that attacks corporations and helps fossil fuel companies while forcing risky investments on Americans. 

• Republicans are using extreme narratives to distract voters from their ultimate goal of helping fossil fuel companies at the expense of our economy and climate, from their attacks on diversity, equity and inclusion initiatives to LGBTQ+ rights.
• Republicans’ baseless attacks represent a clear tactic: “to tar moves by the financial sector to weigh the climate risks posed to the oil, gas and coal businesses as ‘discrimination,’”
• Reporting has shown that the “culture war” around environmentally responsible investing “began with an attempt by West Virginia coal companies to push back against the financial industry’s rising unease around investing in coal.”

The Bottom Line: Republicans’ extreme crusade against American businesses is bad for the economy. 

• Responsible investing helps our economy and our climate, with research showing that these initiatives “drive better financial performance.” 
• CEOs at Fortune 500 companies support environmentally responsible investing because “it is good for business.”
• A study of 11,000 mutual funds showed sustainable funds have comparable, if not better, financial returns to traditional funds with less downside risk.
• These attacks “[endanger] not just the planet but also the financial stability of Americans’ retirement savings and pensions.”
• Not only that – these attacks serve to push financially risky investments onto Americans while Big Oil companies get richer. 
• The Republican attacks will result in a loss of billions of dollars in returns for public pensions across the nation. 
  • In Kansas, Republicans’ bans would result in the projected reduced returns of $3.6 billion over 10 years.

• • Arkansas would lose an estimated “$30 million to $40 million a year due to an anti-ESG bill.”
  • Indiana found that the ban “could result in reduced aggregated investment returns for defined benefit and defined contribution funds managed by INPRS by $6.7 B over the next 10 years.”
• State administration costs of the Republicans’ reckless and outrageous bans will cost states millions of dollars per year.
  • Missouri’s ban “will result in a total cost increase of over $1.7 million per year for [the Missouri State Employees’ Retirement System.]”
• Under Republicans’ legislation, state and local governments pay higher interest rates and borrowing costs. 
  • Recent research showed that “in Texas alone, the state’s municipal borrowers are paying as much as $532 million more in borrowing costs because of Republican lawmakers’ war with Wall Street over ESG.”
  • A Bloomberg analysis found that “since it began its assault on ESG in 2022, Texas, with its perfect AAA credit rating, is paying 19 basis points more in yield (the equivalent of $1.9 million on every $1 billion of bonds sold) than AA rated California on routine borrowings.”