2024 Upcoming Elections
- Governor – incumbent (Republican) term-limited
- Atty. General – incumbent (Republican) running for re-election
Legislation/Guidance in Effect
Title |
Key Dates |
Nature of |
ESG Category |
|
Effective date |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Provides that if the treasurer of state concludes that the service provider has made an ESG commitment, the treasurer of state shall provide the name of the service provider and research supporting the conclusion to the board of trustees of the Indiana Public Retirement System (INPRS) (board). |
|
Target Entities that Boycott Certain Industries |
||||
Indiana pension system contracts with conservative anti-ESG firm |
Adopted and in effect |
Enforcement/Divestment |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Local news reported that Indiana’s Public Retirement System is the first known state pension system to contract with anti-ESG firm Strive Advisory, LLC and its co-founder Vivek Ramaswamy to review its investment policy statement. |
Attorney General Advisory Opinion 2022-3: Indiana Public Retirement System and ESG Investments |
Adopted and in effect |
Attorney General Position |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Applies to the INPRS. Concludes that Indiana law prohibits the INPRS from: (i) choosing investments or investment strategies based on ESG considerations; (ii) exercising rights appurtenant to investments (i.e., proxy voting) based on ESG or "extraneous" considerations; or (iii) retaining investment advisors that make investments, set strategies, engage with portfolio companies, or exercise voting rights appurtenant to investments based on ESG considerations. Investment managers and other agents delegated by the INPRS board assume the same statutory obligations and fiduciary duties. |
Pending Legislation
Title |
Key Dates |
Nature of |
ESG Category |
|
Introduced |
Legislation |
Prohibit Discrimination on Basis of Social Credit or ESG Scores |
■ Prohibits a financial services provider from discriminating in providing financial services to a consumer by using a social credit score as a basis for directly or indirectly: (1) declining to provide to the consumer full and equal access to one or more financial services; or (2) providing the consumer with one or more financial services on less favorable terms and conditions than would otherwise apply to the consumer if a social credit score were not used. If enacted, the bill would be effective July 1, 2024. |
Past/Inactive Legislation
Title |
Key Dates |
Nature of |
ESG Category |
|
Introduced, but did not pass in 2023 legislative session |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Similar to HB1008, but also includes an enforcement mechanism under the authority of the state attorney general, and any violation shall equal three times the amount paid to a company that is serving as a fiduciary to a fund of the public pension system. |
|
Introduced, but did not pass in 2023 legislative session |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Requires the board of the INPRS to make investment decisions with the primary purpose of maximizing the target rate of return on investments. Prohibits the board from making decisions with the goal of influencing social or environmental policy or attempting to influence company governance for nonpecuniary purposes. |
|
Introduced, but did not pass in 2022 legislative session |
Legislation |
Promote Divestment from Certain Industries |
■ Requires the INPRS board to establish a plan to divest of any publicly traded company that has been identified as among the 200 largest reserve-owning fossil fuel companies based on the amount of carbon emissions in the company's oil, gas, and coal reserves and to complete divestment in restricted companies by December 31, 2029. |
|
Introduced, but did not pass in 2022 legislative session |
Legislation |
Target Entities that Boycott Certain Industries |
■ Applies to the INPRS. Requires the Board for Depositories to maintain a list of financial companies that boycott energy companies. Requires divestment within 360 days if a listed financial company does not cease its boycott within 90 days of receiving the notice of the intention to divest. |