Nearly two dozen Republican state treasurers around the country are working to block climate action on state and federal levels, fighting regulations that would make clear the economic risks posed by a warming world, and lobbying against climate-minded nominees to key federal posts.
Over the past year, treasurers in nearly half the United States have been coordinating tactics and talking points, meeting in private and cheering each other in public as part of a well-funded campaign to protect fossil fuel companies.
Last week, Riley Moore, the treasurer of West Virginia, announced that several major banks would be barred from government contracts because they are reducing their investments in coal, the dirtiest fossil fuel.
Mr. Moore and the treasurers of Louisiana and Arkansas have pulled more than $700 million out of the world's largest investment manager due to its focus on environmental issues. Climate action and other causes are being pressured by the treasurers of Utah and Idaho to be dropped.
The nominations of federal regulators who wanted to require that banks, funds and companies reveal the financial risks posed by a warming planet were opposed by treasurers from Pennsylvania, Arizona and Oklahoma.
The State Financial Officers Foundation is a little-known nonprofit organization that used to focus on borrowing costs and managing debt loads.
President Biden promised to speed the country's transition away from oil, gas and coal in order to save the planet.
Republican state treasurers, who are mostly elected officials and who are responsible for managing their state's finances, were pushed by the foundation to use their power to promote oil and gas interests.
Thousands of pages of internal emails and documents obtained through public records requests were reviewed by the New York Times.
At conferences, on weekly calls, and with a steady stream of emails, the foundation hosted representatives from the oil industry and funneled research and talking points from conservative groups to the state treasurers.
The Heritage Foundation, the Heartland Institute and the American Petroleum Institute are some of the conservative groups that have ties to the fossil fuel industry.
Many Democratic state treasurers support efforts to combat climate change and want banks and investment firms to be clear about the risks they pose to returns for retirees. Legislation is being worked on in California and New Jersey that would require the state's pension systems to stop investing in fossil fuels. The State Financial Officers Foundation is orchestrating a national campaign for Democrats.
Global warming is an economic menace that is damaging industries like agriculture and causing extreme weather that is devastating communities and costs taxpayers billions of dollars in recovery and rebuilding. Climate science has become a front in the culture wars because they frame efforts to reduce emissions as a threat to employment and revenue.
Robert Butkin, the former Oklahoma treasurer, said that this was a departure from their traditional roles. There used to be a strong nonpartisan and bipartisan ethic among the treasurers.
In November, as major banks and corporations at a global summit in Glasgow were promising to take climate action, the Republican state treasurers were discussing ways to stop them.
The group's chief executive made a presentation about a new law that had been signed by the governor of Texas. State agencies can't invest in businesses that have ties to fossil fuel companies.
The bill that became law in West Virginia was written by Mr. Moore. Texas officials have been slow to enforce their laws, but Mr. Moore was quick to act.
Five major financial institutions were told last week that they can't do business with West Virginia because of their dealings with coal companies.
If a bank says they have a no-lending policy for thermal coal, we will find a bank that doesn't have that policy.
Mr. Moore denied that burning oil, gas and coal would lead to planetary catastrophe.
Since Earth was created, the climate has changed. I am not sure if these greenhouse gas emissions contribute to the warming of the globe.
The banks are not boycotting the industry. They still do a lot of business with oil and gas companies, but they think it's a good idea to move away from fossil fuels. West Virginia is the second largest coal producer in the country, but production has declined over the past two decades.
The new law celebrated by Mr. Moore was opposed by the West Virginia Bankers Association. The banks are in the middle of a battle that no one can win.
Mr. Kreifels said in a statement that climate change was putting politics over profits and was likely to reduce shareholder value.
Similar laws have been passed in Kentucky, Tennessee and Oklahoma. Mr. Moore said in a news release that Kentucky has taken concrete steps to fight back against the woke capitalists who are trying to destroy our energy industries.
Republican lawmakers in more than a dozen other states are trying to pass similar legislation.
It is possible that the laws will cost taxpayers. Texas cities that have left the market because of laws targeting companies that embrace environmental, social and governance priorities are likely to incur up to $532 million in higher interest costs in less than a year.
The public finance market is being used by officials to make political statements, according to a study. The laws can be used as a carrot or stick, but the costs can be large.
Individual financial institutions are being targeted by the treasurers.
The treasurers of Utah and Idaho are opposing plans by S&P Global to integrate climate risk into its credit ratings of states. The $8.5 trillion asset manager has been attacked for its stance on environmental issues.
In order to steer away from fossil fuels and towards a more sustainable economy, Larry Fink has been outspoken.
The integration of climate risk into investment decisions is a fundamental reshaping of finance.
The office of Mr. Moore withdrew about $20 million from the operating funds.
Capitalism has the power to shape society, Mr. Moore said. The state doesn't want the same shape of society.
The other treasurers did the same thing. The Arkansas treasurer pulled $125 million from the asset manager. In April, the treasurer of Louisiana bragged about withdrawing more than $600 million from his accounts. Citigroup, Bank of America and JP Morgan were all blocked from bond financing.
John said that it was excellent. Emails reviewed by The Times show that Mr. Moore responded. The work was great.
It was not possible to comment on the matter.
Mr. Milligan said in his email that he felt a strong sense of responsibility to not allow the liberal agenda to disadvantage the people he was elected to serve. The two men declined the requests for interviews.
The withdrawals by a few states are small. There is concern that the state bans could spread to pension funds, which account for $4 trillion in investments across the country.
Noah Friend was the former general counsel for the Kentucky treasury. If you are a Republican, you have to bank with this company, if you are a Democrat, you have to bank with that company. Everything gets politicized when it comes to who you do business with.
Some of the biggest names on Wall Street are connected to a complex web of conservative groups.
According to emails, Mr. Kreifels was asked to give a memo to other state treasurers about the fossil fuel boycott bills.
The memo used research from the Heartland Institute, a think tank with a history of denying climate science, and misrepresented how banks and other financial institutions were implementing their E.S.G. strategies.
If you own a gasoline powered car, you will be phased out of banks' portfolios unless you switch to electric vehicles, according to a memo. If you want to buy a house that runs on natural gas in the future, you won't be able to get a mortgage until you install solar panels on the roof.
No banks have come up with such a proposal. Ms. Ellsworth wouldn't say anything.
Records show that the Heartland Institute has worked to connect the treasurers with influential conservative media figures.
The Heritage Foundation, a think tank that has long opposed action to combat climate change, has received funding from the Koch brothers.
The State Financial Officers Foundation hired a conservative strategy firm that was founded by Leonard Leo, who has led a multi-year effort to stack federal courts with judges who oppose climate action. Emails reviewed by The Times show that CRC Advisors has helped coordinate media responses to treasurers.
The American Legislative Exchange Council is a conservative group with ties to the Koch brothers.
The chief executive of the American Legislative Exchange Council is a board member of the State Financial Officers Foundation.
Blocks of discounted hotel rooms were shared by the State Financial Officers Foundation and ALEC when they hosted a conference in July of last year. The treasurers attended the annual meeting of ALEC in Atlanta.
According to Jesse Coleman, a senior researcher at Documented, the State Financial Officers Foundation is part of a network of political groups that are attacking climate policies. He said that the group was working to weaponize state treasurers' offices against federal appointees and corporate policies that address climate change.
The State Financial Officers Foundation doesn't have to reveal its funders. Some of the biggest companies in the world, many of which say they are committed to reducing greenhouse gas emissions, are funders of the organization. All of them have embraced E.S.G. principles.
Most of the sponsors didn't want to talk about their contributions. Beth Richek acknowledged the bank's support for the group. She said that mutual engagement is important for the company and employees.
The entire federal government would be focused on reducing the country's emissions with new rules implemented across federal agencies staffed by political appointees who embraced the effort.
State treasurers were one of the obstacles Mr. Biden didn't anticipate.
In May 2021, 15 treasurers sent a letter to John Kerry, Mr. Biden's climate envoy, raising concerns that the administration was hostile to the oil and gas industry.
The letter said that attacks on the fossil fuel industry cut off paychecks for workers and took food off the table for middle class families.
At the end of the year, the treasurers were lobbying against proposed rules.
Mr. Biden nominated Saule to be the comptroller of the currency. Republican senators, some moderate Democrats and the banking industry were against her desire to open the Federal Reserve to retail banking.
She said that if fossil fuel companies went out of business it would help fight climate change. More than 20 financial officers signed a letter saying she was a radical extremists.
Mr. Kreifels sent an email to the treasurers to wish them good fortune. He said it was an honor to work with you all.
The treasurers focused on another nominee who Mr. Biden had nominated to be the head of bank oversight. Ms. Raskin is a former Federal Reserve and Treasury official.
Mr. Kreifels urged the treasurers to speak out against Ms.
The foundation provided messaging strategies in emails. We need to make a lot of noise about this. For the week, make this the kitchen table issue.
Ms. Raskin withdrew from the race. Mr. Biden said that Sarah was attacked by industry and conservatives.
New federal rules are intended to strengthen the government's ability to act on climate change.
The State Financial Officers Foundation collaborated with the Heritage Foundation to respond to proposals from the Financial Stability Oversight Council, a government panel assigned to minimize risk in the financial sector, on ways to reduce the threats posed by climate change.
The Utah treasurer drafted a letter opposing a Department of Labor rule that would allow retirement plans to consider risks from global warming. The draft was given to the foundation's members and more than a dozen treasurers signed the final letter. The Department of Labor has not made a decision.
The office of the comptroller of the currency was targeted by the treasurers. The Heritage Foundation sent a memo outlining their opposition to the rule after it was proposed. The proposed rule was objected to by dozens of state treasurers and attorneys general.
One comment said that the special concern for and attention to climate- related risks is irrational.
The Securities and Exchange Commission has proposed regulations that would require companies to publicly disclose their climate risks. A representative from the American Petroleum Institute was the featured guest.
The S.E.C.'s proposed rule, which has not yet been enacted, was called "irrational climate exceptionalism" by the State Financial Officers Foundation.
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