Title	Key Dates	Nature of Action	ESG Category	Summary
HB750: Address ESG Factors	Effective date 6/27/2023 Adopted 6/27/2023 Introduced 4/18/2023	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■A fiduciary's evaluation of an investment shall take into account only pecuniary factors. ■Environmental, social, corporate governance, or other similarly oriented considerations are pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories. SUBSEQUENT DEVELOPMENTS A North Carolina anti-ESG bill has become law after Republican lawmakers voted to override Democratic Gov. Roy Cooper's veto of the bill. The legislation will bar state entities from considering ESG criteria when making investment and employment decisions. The state Senate overrode the veto in a 29-16 vote on June 27, following a 72-46 vote in the House. Mr. Cooper originally vetoed the bill on June 23, arguing that it "unnecessarily limits the treasurer's ability to make decisions based on the best interest of state retirees and the fiscal health of the retirement fund," in a statement.
State Treasurer Calls for BlackRock CEO to Step Down	Adopted and in effect 12/9/2022	Treasurer Position	Target Entities That Boycott Certain Industries	■ State Treasurer calls for BlackRock CEO to resign or be removed from his position, claiming that “[his] political agenda has gotten in the way of his same fiduciary duty.” Currently the North Carolina Retirement Systems has approximately $14 billion invested in BlackRock funds with an additional $55 million invested in BlackRock stocks or bonds.

Title	Key Dates	Nature of Action	ESG Category	Summary
House Bill 38: Second Amendment Financial Privacy Act	Introduced 2/25/2025	Legislation	Target Entities That Boycott Certain	■ Prohibits payment card networks from: using, in connection with a payment card transaction involving a firearms merchant located in this State, a code that identifies the merchant as a firearms dealer or identifies the purchase as a purchase of a firearm or firearm ammunition, knowingly maintaining a record of individuals residing in this State who own firearms or discriminating against a firearms merchant based solely on the assignment or nonassignment of a firearms code.
House Bill 62: Farmers Protection Act	Introduced 2/25/2025	Legislation	Prohibit Discrimination on Basis of Social Credit or ESG Scores	■ Prohibit state chartered banks, credit unions, savings and loan associations, and savings banks from denying or canceling its services to an agriculture producer based on environmental, social, and governance factors (ESG) and create a civil penalty of $10,000 for any violation.
HB 784: Financial Institutions/ESG Factors	Introduced in 2023, carried over to 2024	Legislation	Prohibit Discrimination on Basis of Social Credit or ESG Scores	■Prohibits financial institutions from discriminating based on political affiliation or value-based or impact-based criteria, including environmental, social, and governance credit factors.
S737: State Employee Retirement Protection Act	Introduced in 2023, carried over to 2024	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ An Act addressing the use of ESG criteria by state agencies and state pension plan fiduciaries. Largely overlaps with S679 below by prohibiting fiduciaries from considering nonpecuniary factors with respect to investment decision-making and proxy voting.
S679: NC Public Finance Protection Act	Introduced in 2023, carried over to 2024	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Provides fiduciary standards of care, delegation of authority, authority for voting on shares, and proxy voting requirements; prohibits consideration of non-pecuniary factors; authorizes the attorney general to enforce this act. ■ Clarifies that ESG or other similarly oriented considerations are pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories. The weight given to those factors should solely reflect a prudent assessment of their impact on risk and return. Fiduciaries considering ESG or other similarly oriented factors as pecuniary factors are also required to examine the level of diversification, degree of liquidity, and the potential risk-return in comparison with other available alternative investments that would play a similar role in their plans' portfolios.
HB 24: Review of Federal Acts/Rules/Regulations	Introduced in 2023, carried over to 2024	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■Provides for legislative review or review by the attorney general of federal acts to determine the constitutionality of those acts and to prohibit the implementation of unconstitutional federal laws, rules, and executive orders. Including the regulation of the financial sector as it relates to ESG standards.

Legislation/Guidance in Effect

Pending Legislation

Contacts