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 maintaining strong financial returns. The legislation introduces a new section that emphasizes the importance of environmental, social, and governance (ESG) standards, mandating the board to consider these factors when assessing investment risks. Specific responsible investment principles are outlined, prohibiting investments that contribute to serious human rights violations, environmental degradation, and other ethical concerns.

Additionally, the bill amends existing laws to require the board to develop proxy voting guidelines that reflect these responsible investment principles and to report annually on their implementation. This includes detailing the process for identifying companies that violate these principles and the actions taken to mitigate associated risks. The amendments also clarify the board's responsibilities in managing investments with a focus on both current circumstances and potential future violations, ensuring a comprehensive approach to responsible investing.

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