Raising The Bar

Overview

What is Sustainable Investing?

Sustainable Investment Act FAQ

Actions Taken

Proxy Voting Search

Sustainability Research

The Illinois Sustainable Investing Act

In 2019, sustainable investment practices were codified into law. The Illinois Sustainable Investing Act (PA 107-473) provides that all state and local government entities that hold and manage public funds, including the Illinois Treasurer, “shall prudently integrate sustainability factors into its investment decision-making, investment analysis, portfolio construction, risk management, due diligence and investment ownership in order to maximize anticipated financial returns, minimize projected risk, and more effectively execute its fiduciary duty.” To further fulfill all tenets of the Sustainable Investing Act, the Office maintains a standalone Sustainable Investment Policy Statement and also incorporates sustainability language and processes within each of its investment portfolios’ Investment Policy Statements.

Raising the Bar Through Sustainability

The Treasurer’s Office is working to raise investment standards by recognizing that environmental, social capital, human capital, business model and innovation, and leadership and governance practices can all influence a company’s performance over time. As a long-term investor, we fulfill and enhance our traditional investment goals—strong risk-adjusted returns, low costs, diversification, and sound risk management—by incorporating sustainability and corporate responsibility in our investment processes.

For the investment officers at the Illinois State Treasurer’s Office, making choices means choosing investments that are risk-appropriate, high-performing, and meet or exceed the benchmark. It means selecting investments that reflect our commitment to sustainability, inclusion, and sound corporate governance, as these factors boost investment returns and strengthen the economic well-being of Illinois citizens and institutions.

Sustainable Practices Can Strengthen Long-term Value

Companies will struggle to create sustainable value if they do not build resilient relationships with stakeholders and address material risks driven by environmental, social, governance, human capital, and business model factors. Companies should develop strategic plans, identify and mitigate material risks, have adequate board oversight, and recognize emerging growth opportunities in their businesses to better position themselves to generate consistent, sustainable value. It is possible for companies to capture short-term profits through practices that do not adequately consider all stakeholders, but such an approach will not yield long-term growth. For investments made on behalf of college savers and retirement account holders, the Office of the Illinois Treasurer seeks companies with strong potential to generate long-term, sustainable value, meaning they will be profitable not just in the next fiscal quarter but throughout the next quarter century.

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a wheel showing the types of sustainability issues for institutional investors

Proxy Policy Statement

2026 Proxy Voting – Policy Statement

Sustainability Investment Policy Statement

2025 Sustainability Investment Policy Statement

Sustainable Investment Report

The Illinois Treasurer publishes an annual sustainable investment report. These reports detail the Illinois Treasurer’s sustainable investing priorities and activities for the relevant calendar year.