HB 2782: Illinois Requires Pension Fund Managers to Disclose Integration of ESG Factors

July 28, 2023

Summary

HB 2782 was enacted and became effective in July 2023 and amends the Illinois Sustainable Investing Act (HB 2460). It requires investment managers who serve as fiduciaries for state pensions, retirement systems, or governmental entities to disclose annually how they integrate sustainability factors into investments. 

The law defines sustainability factors to mean "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." Sustainability factors may include corporate governance and leadership factors, environmental factors that may financially impact investment performance, or social capital factors that impact relationships with stakeholders such as customers or local communities. 

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