Illinois Compiled Statutes
Chapter 30 - FINANCE
30 ILCS 238/ - Illinois Sustainable Investing Act.

(30 ILCS 238/1)
Sec. 1. Short title. This Act may be cited as the Illinois Sustainable Investing Act.

(Source: P.A. 101-473, eff. 1-1-20.)
 
(30 ILCS 238/5)
Sec. 5. Findings and purpose.
(a) The General Assembly finds that consideration of factors relevant to the environmental impact, social impact, and governance of investments is vital for maximizing the safety and performance of public funds. Such sustainability factors are indicative of the overall performance of an investment and are strong indicators of its long-term value. Public agencies and governments have a duty to recognize and evaluate these materially relevant factors.
(b) It is the purpose of this Act to prudently integrate sustainability factors into the investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership of public funds to maximize anticipated financial returns, minimize projected risks, more effectively execute fiduciary duties, and contribute to a more just, accountable, and sustainable State of Illinois.


(Source: P.A. 101-473, eff. 1-1-20.)
 
(30 ILCS 238/10)
Sec. 10. Definitions. As used in this Act:
"Financial institution" means a bank, savings bank, or credit union established under the laws of the State of Illinois, another state, or the United States of America.
"Governmental unit" has the same meaning as in the Local Government Debt Reform Act.
"Investment policy" means a written investment policy adopted by a public agency or governmental unit which addresses safety of principal, liquidity of funds, and return on investment and which requires the investment portfolio be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due.
"Public agency" means the State of Illinois, the various counties, townships, cities, towns, villages, school districts, educational service regions, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, the Illinois Bank Examiners' Education Foundation, the Chicago Park District, and all other political corporations or subdivisions of the State of Illinois, now or hereafter created, whether herein specifically mentioned or not.
"Public funds" means current operating funds, special funds, interest and sinking funds, and funds of any kind or character belonging to or in the custody of any public agency.
"Sustainability factors" means factors that may have a material and relevant financial impact on the safety or performance of an investment and which are complementary to financial factors and financial accounting.


(Source: P.A. 101-473, eff. 1-1-20.)
 
(30 ILCS 238/15)
Sec. 15. Development of sustainable investment policies.
(a) Any public agency or governmental unit should develop, publish, and implement sustainable investment policies applicable to the management of all public funds under its control. The sustainable investment policy may be incorporated in existing investment policies developed, published, and implemented by a public agency or governmental unit.
(b) The sustainable investment policy should include material, relevant, and decision-useful sustainability factors to be considered by the public agency or governmental unit as one component of its overall evaluation of investment decisions. Such factors may include, but are not be 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.


(Source: P.A. 101-473, eff. 1-1-20.)
 
(30 ILCS 238/20)
Sec. 20. Consideration of sustainable investment factors in decision-making.
(a) A public agency shall prudently integrate sustainability factors into its investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership in order to maximize anticipated financial returns, minimize projected risk, and more effectively execute its fiduciary duty.
(b) Sustainability factors may include, but are not limited to, the following:
(c) Sustainability factors may be analyzed in a variety of ways, including, but not limited to: (1) direct financial impacts and risks; (2) legal, regulatory, and policy impacts and risks; (3) against industry norms, best practices, and competitive drivers; and (4) stakeholder engagement.
(d) Nothing in this Act prohibits a public agency or governmental unit from integrating additional factors into its investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership of public funds. This Act shall not apply to financial institution time deposits or financial institution processing services.

(Source: P.A. 101-473, eff. 1-1-20.)
 
(30 ILCS 238/100)
Sec. 100. (Amendatory provisions; text omitted).

(Source: P.A. 101-473, eff. 1-1-20; text omitted.)
 
(30 ILCS 238/105)
Sec. 105. (Amendatory provisions; text omitted).

(Source: P.A. 101-473, eff. 1-1-20; text omitted.)
 
(30 ILCS 238/110)
Sec. 110. (Amendatory provisions; text omitted).

(Source: P.A. 101-473, eff. 1-1-20; text omitted.)

Structure Illinois Compiled Statutes