PUBLIC ACT 101-0473 (INVESTMENT POLICIES AND THE SUSTAINABLE INVESTING ACT)

Public Act 101-0473 became effective January 1, 2020.  The Act amends the Illinois Sustainable Investing Act and the Pension Code.

With respect to downstate fire and police pension boards, the Act amends section 1-113.6 of the Pension Code and requires those pension boards to amend their investment policies to include a “statement that material, relevant, and decision-useful sustainability factors have been or are regularly considered by the board, within the bounds of financial and fiduciary prudence, in evaluating investment decisions.  Such factors include, but are not limited to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital factors; (4) human capital factors; and (5) business model and innovation factors, as provided under the Illinois Sustainable Investing Act.”

The Act creates section 1-113.7 of the Pension Code and requires the investment policy to “include” “material, relevant, and decision-useful sustainability factors have been or are regularly considered by the board, within the bounds of financial and fiduciary prudence, in evaluating investment decisions.  Such factors include, but are not limited to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital factors; (4) human capital factors; and (5) business model and innovation factors, as provided under the Illinois Sustainable Investing Act.”

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