Washington

Title

Key Dates

Nature of
Action

ESG Category

Summary

Introduced but did not pass in the 2024 legislative sessions

■ Requires the state investment board to establish investment policies and procedures designed exclusively to maximize return at a prudent level of risk, which must include the consideration of sustainability factors (e.g., ESG factors) with respect to investment decision making, investment analysis, portfolio construction, due diligence, and investment ownership.

■ Sustainability factors may be analyzed in a variety of ways including, but not limited to: direct financial impacts and risks; legal, regulatory, and policy impacts and risks; against industry norms, best practices, and competitive drivers; and stakeholder engagement.

■ The bill also requires the board to develop and publish proxy voting guidelines that recognize climate change as both a business and systemic risk, and to use ownership authority to mitigate these risks. The board should support shareholder resolutions that call for entities to reduce activities that contribute to climate change, and when the board does not support such shareholder resolutions, provide public, written comments as to why the board chose not to support them.

HB1283: Requiring ESG Investment Options for Self-Directed Investment Funds

Introduced but did not pass in the 2024 legislative sessions

Legislation

Promote ESG Factors in Investment and/or Proxy Voting Decisions

■Requires the state investment board to publicly report every three years on its analysis of climate-related financial risk, social responsibility, and establishment and use of proxy voting and corporate governance policies within its private and public market portfolios.

■Additionally requires the board to provide at least three investment options for individuals participating in self-directed investment funds that are consistent with ESG policies and, to the extent possible, reflecting a range of policy preferences and investment objectives.

■ Originally introduced in 2023 as “HB1283: Requiring ESG Investment Options for Self-Directed Investment Funds” but failed to pass during that legislative session. Carried over to 2024 legislative session.