State Attorneys General

State attorneys general have an important voice in efforts to protect responsible investment and business practices. Acting together or as individuals, state attorneys general have released letters, made statements, and taken actions to protect the freedom to invest and operate responsibly.

Letters to Congress

In November 2022, led by Washington, D.C. Attorney General Karl Racine,17 state attorneys general wrote a letter to Congress expressing support for environmental, social, and governance factors. Among many arguments, the letter states "put simply, consideration of ESG metrics can help public pension funds fulfill their fiduciary duty to provide the best return for beneficiaries; failing to do so appropriately can put their pensioners at risk."

In December 2023, led by Arizona Attorney General Kris Mayes, 18 attorneys general wrote a letter to U.S. House and Senate leadership that said ESG factors help contribute to an analyses companies and investors perform to mitigate risk. The letter states, ESG factors can be critical components to prudent investment decision-making. “Environmental factors evaluate a company’s environmental impact and ability to mitigate climate-related financial risks. Social factors examine how a company manages relationships with employees, suppliers, customers, and communities. Governance factors assess a company’s leadership, executive pay, audits, internal controls, and shareholder rights.3 As discussed below, fund managers can properly integrate ESG factors, particularly environmental factors,4 into investment decisions to maximize returns and minimize risks.”

Climate Week 2024

Panel Discussion

At Climate Week in September 2024, several state attorneys general participated in a panel discussion on the Ceres Main Stage regarding the freedom to invest and operate responsibly. Their message was simple: environmental, social, and governance factors are material, and companies and investors should not be constrained when mitigating risk factors.