HB 1008: Indiana Prohibits State Pension from Investing in Firms with ESG Standards
Summary
HB 1008 was enacted in May 2023 and became effective on July 1, 2023. The law prohibits state pension fund leaders from investing with firms that consider ESG commitments. The law defines an ESG commitment as "an action taken or a factor considered by a service provider: (1) with respect to or including the system's assets; and (2) with the nonfinancial purpose to further social, political, or ideological interests based on evidence indicating the purpose."
The law specifies that ESG commitments include commitments related to (1) reduction of greenhouse gas (GHG) emissions; (2) assessment of corporate governance criteria involving corporate leadership, employment, composition, compensation, or disclosure; and (3) divestments from companies that fail to meet or commit to meet environmental standards or disclosures, engage in or support the firearms industry, contract with the U.S. Immigration and Customs Enforcement for federal immigration and border security, or engage in or support the fossil fuel-based energy, timber, mining, agricultural, and food animal product industries.
