Environmental, social, and corporate governance (ESG) investing has emerged as a central issue in the Nov. 3 race for Connecticut treasurer. The Connecticut treasurer is responsible for overseeing the financial investment of state monies, including through the state's public pension funds. Connecticut law allows the state treasurer to consider the social, economic, and environmental implications of investments, provided that the treasurer acts consistently with fiduciary duties to pension beneficiaries.
Incumbent treasurer Erick Russell (D) – who was first elected in 2022 when he defeated Harry Arora (R) 52.4% to 44.9% – defends using ESG to manage the state's approximately $69 billion in public pension assets. Republican candidate Fred Wilms, who represented District 142 in the Connecticut House of Representatives from 2015 to 2019, opposes the practice. Both parties' primaries were canceled after only Russell and Wilms ran.
Russell said using an ESG approach is "part and parcel with driving strong returns on long-term investments" and said reducing greenhouse gas emissions and improving board diversity in the state's investment portfolio were examples.
