The proposed bill, known as the Minnesota Sustainable Investing Act, aims to modify the investment standards of the State Board of Investment to incorporate sustainable investing practices. It emphasizes the importance of considering sustainability factors—such as corporate governance, environmental, social, and human capital factors—when making investment decisions for public funds. The bill outlines the responsibilities of public agencies to evaluate and address these sustainability factors to maximize financial returns and minimize risks. It mandates the development of a sustainable investment policy by the state board, which must identify relevant sustainability factors and incorporate them into investment decision-making processes.

Additionally, the bill includes provisions for climate risk assessment and proxy voting practices, requiring the state board to report on climate-related risks and to develop guidelines that recognize climate change as a significant risk. The state board is also tasked with engaging with investment managers to ensure they consider sustainability factors in their investment strategies. The bill asserts that the state board must act with reasonable care and diligence in managing fund assets, aligning with the fiduciary duty to protect public funds while promoting sustainable investment practices.

Statutes affected:
Introduction: 11A.02