State financial officers in 22 states are alleging that top credit-rating agencies rely on outdated climate-change polices that grant higher rankings to Chinese businesses, while downgrading those based in the U.S. 

The state treasurers and auditors argue in a letter sent Wednesday that the policies could harm their own state's finances if the agencies are using an Environmental, Social and Governance (ESG) framework to downgrade publicly traded companies in which states have invested billions of dollars, the New York Post reported. 

The agencies include Moody’s, Fitch and Standard & Poor. In one case cited in the letter, S&P downgraded U.S. oil and gas companies based on ESG-related risks, but granted an A+ rating to two Chinese state-owned oil and gas companies, claiming they perform better than their international peers on ESG standards. 

The financial officers point out that China produces more emissions than any other country in the world, making the ratings "nonsensical by any objective standard." The ratings, the letter argues, aren't based on objective measurements with consistent methodologies. 

As such, the states see smaller returns on their investments as a result of U.S. companies being downgraded, which undermines states' revenues that are used for roads, schools, firefighters, teachers and other state services, the letter argues.