The bill aims to ensure that the Washington State Investment Board incorporates responsible investment principles into its decision-making processes. It establishes a framework that aligns public investments with the well-being and long-term prosperity of Washington's communities while still achieving strong financial returns. The legislation emphasizes the importance of environmental, social, and governance (ESG) standards, mandating that the board's investment policies account for various risks associated with companies and investment instruments, particularly those that may violate human rights, contribute to environmental degradation, or engage in unethical practices.

Key amendments to existing laws include the introduction of specific responsible investment principles that the board must consider when assessing risk, as well as the requirement to develop proxy voting guidelines that reflect these principles. Additionally, the board is tasked with reporting annually on how it incorporates these responsible investment principles into its activities, including identifying companies that may pose risks and the actions taken to mitigate these risks. This comprehensive approach aims to enhance transparency and accountability in the management of public funds while safeguarding the interests of the state's communities and environment.

Statutes affected:
Original bill: 43.33A.110, 43.33A.140, 43.33A.150