Public pensions manage trillions of dollars on behalf of workers and retirees, and their ability to provide reliable retirement benefits depends on the health of the broader economy. Climate change poses a “systemic” risk that will affect companies across all markets. 

 

That’s why investors like public pensions should push companies to adopt and implement credible net-zero plans. Sierra Club’s Hidden Risk Report examines public pension proxy voting, a tool investors use to engage with companies in their portfolios. It evaluates both the extent to which U.S. pensions voted in favor of climate action and the strength of the guidelines that informed these votes.  

 

Here in Connecticut, Sierra Club has been engaging our State Treasurer Erick Russell to mitigate the risk that climate change poses to the state’s pension funds. In Sierra Club’s Hidden Risk report, our state pension fund, the Connecticut Retirement Plans and Trust Funds (CRPTF), earned a B grade in 2025 — a higher mark than in 2024. Connecticut received the highest marks in the categories of Systemic Risk Statements and Environmental Justice. 

 

 

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Image: Chart of state pension policy and vote scores from Sierra Club’s Hidden Risk in State Pensions Report.

 

The report also highlighted areas where Connecticut’s proxy voting guidelines can be improved. These included the areas of Climate Lobbying and Political Contributions, Just Transition, and Human and Indigenous Peoples’ Rights. Model guidelines are available to support improvements. Treasurer Russell has been leading resolutions on just transition, and we encourage strengthening Connecticut’s proxy guidelines that raise the bar for peers. In 2025, CRPTF received an A for voting at shareholder meetings. 

 

Over the last few months, Sierra Club Connecticut has also urged Treasurer Russell to adopt Principles for Climate Solutions Investments. These principles ensure that climate investments will drive real-world decarbonization. They provide guidance for allocating capital across a range of credible climate solutions, while clarifying which strategies do not constitute a credible approach. They are designed to help financial institutions integrate climate considerations into their investment strategies and strengthen long-term portfolio resilience.

 

You can amplify the need to address climate risk in our state pensions by sending a message to Treasurer Russell.

 

Samantha Dynowski is State Director of Sierra Club Connecticut.