Legislation/Guidance in Effect
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Title |
Key Dates |
Nature of |
ESG Category |
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Effective date |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■Except as otherwise provided in a state investment policy relating to the investment of the legacy fund and unless the state investment board can demonstrate a social investment would provide an equivalent or superior rate of return compared to a similar investment that is not a social investment and has a similar time horizon and risk, the state investment board may not invest state funds for the purpose of social investment. |
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Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■Urges the federal government to refrain from enacting regulations that threaten the reliability and affordability of electric power in North Dakota and to increase support for research, development, and deployment for next generation carbon-based energy generation. |
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Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■Applies to the State Investment Board. |
Pending Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
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HB1330: A BILL for an Act to create and enact a new section relating to divestment from legacy fund investments in Chinese companies. |
Introduced |
Legislation |
Promote Divestment from Certain Countries |
■ The state investment board shall: (i) initiate a review of all direct holdings of legacy fund investments to determine which direct holdings, if any, include securities of a Chinese company; (ii) develop a divestment plan for all direct holdings in Chinese companies, which must divest at least 20% of the total value of Chinese investments held as of August 1, 2025, per year; and complete divestment from direct holdings in Chinese companies under the divestment plan no later than August 1, 2030. ■ "Direct holdings" means all securities of a company which are held directly by the legacy fund or in an account or fund in which the legacy fund owns all shares or interests. The term does not include indirect holdings in actively managed investment funds, including a private equity fund, or holdings in exchange-traded funds. "Indirect holdings" means all securities of a company which are held in a commingled fund or other collective investment, such as a mutual fund, in which the legacy fund owns shares or interests, together with other investors not subject to this chapter. ■ "China" means the government of the People's Republic of China, the Chinese Communist Party, the Chinese military, or any instrumentality thereof. "Chinese company" means a company publicly known to be majority-owned by, controlled by, or subject to the jurisdiction or direction of China. |
Past/Inactive Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
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Introduced, but did not pass in the 2023 legislative session |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■Requires a state plan fiduciary to consider pecuniary factors when evaluating an investment or discharging its duties with respect to a plan. Prohibits consideration of nonpecuniary factors by fiduciaries when evaluating an investment or discharging its duties with respect to a plan. Defines “nonpecuniary factors” as any factor intended to further or promote a political, social, or other nontraditional goal or standard without regard to the investment objectives and funding policy of a plan. |
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HB1278: Requiring Support of State Fossil Fuel and Agriculture Industries |
Introduced, but did not pass in the 2023 legislative session |
Legislation |
Target Entities That Boycott Certain Industries |
■Prohibits any designated agent acting as a custodian of securities purchased on behalf of funds managed by the State Investment Board from being a member of any association that has not publicly supported North Dakota’s fossil fuel and agriculture industries. |
