HB 1429: North Dakota Prohibits ESG-Based Investments and Disparate Insurance Rates Based on ESG and DEI Factors

April 30, 2023

Summary

HB 1429 was enacted in April 2023 and (i) prohibits investment of state funds for the purpose of social investment unless the investment board can demonstrate that it would provide an equivalent or superior rate of return; (ii) prohibits insurers from refusing to insure or charging a different rate based on ESG or diversity, equity, and inclusion (DEI) policies; (iii) requires that proxy votes be made without consideration of social investment; and (iv) implements a study on how ESG policies and laws impact businesses and industries in the state. 

The law defines "social investment" as "the consideration of socially responsible criteria and environmental, social, and governance impact criteria in the investment or commitment of public funds for the purpose of obtaining an effect other than a maximized return at a prudent level of risk to the state."

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