By Jessica McClellan
Democratic Candidate for State Treasurer

Jessica McClellan

In recent years, Hoosiers have seen extreme ideology creep more and more into our state government.

From the Republican-dominated Indiana General Assembly’s near-constant assault on public education to the litany of needless partisan fights led by disgraced former Attorney General Curtis Hill and current Attorney General Todd Rokita, to the reckless lawsuit by then State Treasurer Richard Mourdock that, if successful, would have brought down Chrysler and destroyed thousands of Hoosier jobs along with it.

Sadly, Hoosiers know all too well what it’s like when their leaders put politics and their own ambition before the best interest of the state.

That’s why a recent investigation by the New York Times, published Aug. 5, titled “How Republicans are ‘Weaponizing’ Public Office Against Climate Action,” raised some alarm bells for me, and hopefully, all Hoosiers. The article outlined a coordinated effort to encourage Republican state treasurers across the nation to withhold their states’ tax dollars from companies, banks and investment firms that are making efforts to curb climate change.

As Republican state treasurers across the nation join this band of climate change deniers, offices of state treasurer will become politicized, corruptible and ineffective in managing the financial assets of the state. State treasurers are tasked with stabilizing their state’s financial future, including looking at the investment strategy long term and considering risk factors that will strengthen the economic well-being of the state. Evaluating risk factors that may have an impact on the safety and performance of investments is not only sustainable for taxpayers; it is also good business.

The tactics being employed behind the scenes, insulated from the public eye by layers of governmental bureaucracy, by often little-known elected office holders, are a dangerous use of political power and put the integrity of the state treasurers’ office at risk.

We know that some states have passed laws that prohibit state agencies from investing in businesses that have cut ties with fossil fuel companies. Other states have pulled their investments from financial institutions that prioritize environmental, social and governance benchmarking, known as ESG analysis, blaming the “woke” agenda for causing disadvantages to their citizens. Indiana legislators have already tried this tactic in the 2022 regular session. House Bill 1224 would have prohibited state agencies from contracting with certain companies unless they produce a statement stating they do not boycott energy companies

Banking and financial institutions are beginning to strategically divest from coal companies, while increasing their dealing with renewable and clean energy business. This is in response to a market in which every company and government is being forced to realize the impacts of climate change on their bottom line, whether it be responding to mitigation, public outcry or future growth opportunities.

Many companies have taken public stances on a variety of social and environmental factors that are clearly, to their boards and shareholders, strengthening their company and raising their bottom line, such as reducing greenhouse gas emissions, diversifying talents pools, reducing energy consumption and fostering relationships with organized labor.

The tactic of punishing companies for acting in their shareholders’ and employees’ best interests, by a state elected official, is the direct use of political power for a self-serving political agenda. By pushing aside the fiduciary responsibility to assess investments fairly, these state treasurers are putting their long-term investments such as pension funds, at risk.

If elected as Indiana’s next state treasurer, I pledge to fuse traditional investment objectives, optimal returns, low expenses and diversification, with risk management practices that are strongly related to safer, more innovative and better-performing companies. As state treasurer, I will invest and borrow in a responsible manner, stabilize our financial future and structure long-term growth for Indiana.

Global business leaders are increasingly accepting the need for policies that address broad environmental, social and governance objectives. Companies regularly include sustainability reports and net zero targets to their boards. Their stakeholders are holding them accountable. I pledge never to hold this against a company for ideological reasons.

Regardless of where you fall on the political spectrum, we can all agree that efforts to weaponize offices like state treasurer to drive political agendas rather than sound financial decisions are a bad idea. Hoosiers should know; we’ve seen this before.