Voters in 10 states will vote on their treasurer next week. Voters in 8 states will vote on their auditor.

State treasurers oversee state investments, such as public pension funds, making them responsible for deciding if their respective states will incorporate ESG strategies into their portfolios. Additionally, both treasurers and auditors commonly have roles implementing and enforcing pro- or anti-ESG laws and regulations and ensuring funds are invested in the best interests of beneficiaries.

In case you’re not familiar, here’s a quick background on ESG: ESG investing is an asset management approach that considers the environment, social issues, and corporate governance practices. It’s a type of stakeholder investing, which argues shareholder returns should not be the only goal. Stakeholder investing contrasts with traditional approaches that exclusively consider financial factors like balance sheets, income statements, and valuations to maximize risk-adjusted returns (also known as shareholder investing). To learn more about ESG and commonly considered investing factors, click here.

Today, we highlight two of the most competitive state treasurer elections in 2024: North Carolina and Pennsylvania.

North Carolina

Brad Briner (R) and Wesley Harris (D) are running in the Nov. 5, 2024, general election for North Carolina Treasurer. Incumbent Dale Folwell (R) ran unsuccessfully for the Republican gubernatorial nomination on March 5, 2024.

Briner has argued against ESG and promoted state investments in fossil fuel and other traditional energy sectors. His campaign website says the “ESG crowd has driven a lemming-like abandonment of sectors like traditional energy sector that – like tobacco a generation ago – creates compelling returns for the non-politicized investors who remain.” Briner also says he would move away from the sole trustee treasurer model—which he says enables corruption—and toward a board of trustees for managing the state’s investments. Briner said in a PBS interview, “It’s ironic, I’m running for office to diminish the power of the office ultimately but I think it’s the right thing to do for our state.”

Harris said he would focus on financial factors in his investments and avoid considering his political preferences. He’s argued in favor of the sole fiduciary model and against a board of trustees for managing the state’s investments, saying the change would give more power to the legislature, which he opposes. Harris said, “It’s about accountability. This is a position that is elected by the people. Not every treasurer is elected by the people, and so the people get the say, and that is something that I hold near and dear. That’s the backbone of our democracy and one person can be corrupted, so can a group of political appointees.”

Pennsylvania

Incumbent Stacy Garrity (R) and Erin McClelland (D) are running in the Nov. 5, 2024, general election for Pennsylvania Treasurer. ESG and Israeli bonds have emerged as issues in the race.

Garrity invested $20 million in Israeli bonds on Oct. 12, 2023, saying it was important “to show our support at a time when the people of Israel are facing horrific terrorism.” Garrity said the bonds are a good investment because they “pay above-market returns and they’ve never defaulted.”

McClelland has argued Garrity politicized the state’s investments with foreign policy considerations. She said there are “too many factors when you’re dealing with a foreign country that you cannot control for.” McClelland says she would use the state’s investments to promote stricter human rights and environmental standards in corporate supply chains. 

Learn more

To learn more about state auditor and state treasurer elections in 2024, click here.