John,

You might be hearing the term “ESG”, and discussion of an anti-ESG bill, floating around right now.

ESG (environmental, social, and governance) is a framework used to determine whether a company is worth investing in or identify risks that companies face that may impact investors.

Here at the comptroller’s office, considering ESG means that we’re thinking more consciously about our investments and the impact they have on public sector workers’ pensions.

For example, a company might be risky to invest in because it doesn’t have strong rules against insider trading, or because it’s union-busting and may suffer long-term reputational damage.

Failing to consider those factors, and investing in those companies anyway, could put the pensions of New York municipal workers, like teachers and firefighters, in jeopardy down the line. ESG is just using common sense to invest responsibly.

But Republicans in Congress recently shot down a Department of Labor rule that would allow retirement managers to consider ESG. They’re too wrapped up in their donors’ finances and the profit margins of fossil fuel companies to care about their constituents’ futures.

Take Senator Mike Braun of Indiana, who sponsored the ESG bill. When I asked CNBC commentators to ask him whether he received political contributions from the fossil fuel industry that might have influenced him, Braun refused to answer. But he’s received thousands of dollars in contributions from oil and gas companies.

The same is true for Rep. Kevin McCarthy, who received over $600,000 in contributions from oil and gas companies before claiming that advocates for the ESG bill are “destroying America’s retirement for their liberal causes.” The reality is that ESG just makes sense—and the bill’s passage could result in significantly small pension returns three, four, or five decades in the future.

Where does the legislation stand now? It’s my hope that President Biden will veto Republicans’ legislation attacking ESG. And I won’t stop pushing to protect workers and their financial futures here in New York. Thanks for reading.

Brad