The PRI welcomes Congressman Andy Levin (MI-09)’s bills, which aim to protect and increase sustainable investment. Together, the bills encourage large asset managers, plan investors and fiduciaries to take into account ESG factors when making investment decisions and make clear that considering ESG factors can be part of fiduciary duty.
The Sustainable Investment Policies Act:
- Amends the Investment Advisers Act to require investment advisers to file Sustainable Investment Policy with the SEC
- Investment advisors must consider:
- Corporate political spending
- Worker and collective bargaining rights
- Climate and other environmental risks
- Global Human Rights and diversity and inclusion practices
The Retirees Sustainable Investment Opportunities Act:
- Allows ERISA-regulated plans to adopt a Sustainable Investment Policy
- Sustainable Investments may serve as Qualified Default Investment Alternatives
In response to the reintroduction of both bills, Fiona Reynolds issued the following statement:
“The incorporation of sustainable investment practices relies on a clear, supportive regulatory environment. Both the Sustainable Investment Policies Act and Retirees Sustainable Investment Opportunities Act help create that regulatory support by establishing sustainable investment as part of fiduciary duties. Across markets and around the world, we must empower workers and support investment managers to incorporate environmental, social and governance (ESG) issues into their retirement and investing decisions to fully consider associated risk and achieve sustainable, long-term value creation. We also welcome the addition of human rights considerations to the latest draft legislation, a growing priority for PRI and our nearly 4,000 signatories around the world.”
A summary of the press release is available here.
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