Bill > HF4790

This bill modifies the investment standards for the State Board of Investment (SBI) to require sustainable investing. The key provisions are: 1. The bill establishes the "Minnesota Sustainable Investing Act," which finds that considering sustainability factors, such as corporate governance, environmental, social, and human capital factors, is vital for evaluating risk and maximizing the performance of public funds. 2. The SBI must develop and implement a sustainable investment policy that identifies sustainability factors that may impact the performance of individual investments and the fund as a whole. The SBI must prudently consider these sustainability factors when making investment decisions. 3. The SBI must engage investment managers who disclose how they consider sustainability factors in their investment decision-making and any sustainability factors they have not considered in the past year. 4. By 2025, the SBI must include in its annual report an assessment of climate change-related risks and their financial impact, identify environmentally sustainable investment opportunities, and develop transition assessments for investments in high-impact sectors. 5. The SBI must develop and publish proxy voting guidelines that recognize climate change as a business and systemic risk and commit to using voting opportunities to support shareholder resolutions that reduce greenhouse gas emissions and promote climate accountability. 6. The SBI must invest and manage fund assets with reasonable care, skill, prudence, and diligence under the circumstances that a prudent person would use in a similar capacity.