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.
Wilms’ campaign website said, "The Treasurer's role isn’t to push a personal agenda—it’s to protect and grow Connecticut’s financial assets for taxpayers and retirees…. That means resisting ESG, holding managers to their benchmarks, and eliminating underperforming investments… .”
Wilms called for transferring fiduciary duties for the state's pension funds from the treasurer to an investment board. The board would assume authority over ESG-related decisions as well as other investment decisions now entrusted primarily to the treasurer. Russell and Gov. Ned Lamont (D) opposed similar legislation in 2025, arguing that the existing Investment Advisory Council already provides sufficient oversight.
Russell said three years of double-digit returns are evidence that considering ESG factors alongside financial metrics improves performance. He said that the Connecticut Retirement Plans and Trust Funds — which invests assets for the state’s six public pension systems — ranked in the top 17% of public pension funds in 2025, reflecting a turnaround after a decade of underperformance. Russell attributed these gains to structural changes and his investment team's work, though he acknowledged a strong stock market played a role.
Five states encourage public pension officials to consider ESG, while 21 states currently restrict or discourage it, based on a 2024 Pew analysis and a 2026 Simpson Thacher report. All five states encouraging ESG consideration have Democratic trifectas. Of the 21 restricting states, 18 have Republican trifectas and three — Kansas, Kentucky, and North Carolina — have divided governments.
Ballotpedia tracks support for and opposition to the ESG investing movement. To learn more about arguments for, against, and about ESG, click here. For more information on reform proposals related to ESG policy, click here.
