SB 1405: Idaho Restricts Public Entities from Considering ESG Characteristics in Public Investments
Summary
SB 1405 was enacted in March 2022 and became effective on July 1, 2022. It provides that public entities that engage in investment activities must apply the Idaho uniform prudent investor rule when selecting investments and prohibits consideration of "environmental, social, or governance characteristics in a manner that could override the prudent investor rule." The prudent investor rule requires that investment decisions be made considering the purposes of the investment and exercising "reasonable care, skill and caution." The law provides that environmental, social, and governance preferred investments may be offered, but only as an alternative and not as a requirement.
Impacted Sectors
Additional Information
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