Bill > SB6304

This bill mandates that the Washington State Investment Board (WSIB), which manages public funds like retirement and trust funds, must incorporate "responsible investment principles" into its investment decisions, aiming to align investments with the well-being and long-term prosperity of Washington communities without compromising strong financial returns. These principles, detailed in RCW 43.33A.110, include avoiding investments that contribute to serious human rights violations, involvement in certain weapons sales, operating public or for-profit prisons or immigration detention centers, gross environmental degradation, unacceptable greenhouse gas emissions that conflict with state climate goals, recreational tobacco production, coal production or power generation where a company derives a significant portion of its revenue from it, gross corruption, or serious financial crimes, and other grave violations of ethical norms. The bill also requires the WSIB to assess the probability and severity of future violations when deciding to invest or exclude a company, develop and publish proxy voting guidelines that recognize these principles as business and systemic risks, and use its ownership authority to mitigate these risks, including voting to support shareholder resolutions that promote adherence to these principles. Furthermore, the WSIB will be required to report annually on its process for identifying companies and investment instruments that implicate these principles and the actions taken to manage associated risks.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=6304&Year=2025&Initiative=false