Illinois Sustainable Investing Act FAQs
All public entities in Illinois that have public funds within their custody are subject to this law. This law applies to all current operating funds, special funds, interest and sinking funds, and any other funds. What that means for you is that changes will need to be made to the investment policy statement to reflect that sustainability factors are being incorporated into investment decision-making related to funds in your custody. The investment policy should include material, relevant, and decision-useful sustainability factors to be considered in its evaluation of investment decisions.
Sample policy language can be found on our website.
The implementation of this integration can vary based on how funds are managed. For instance, if an investment manager is used, you can ask questions during the manager selection process or after selection to better understand how the manager is accounting for these investment risks. We have sample Sustainability Due Diligence Questionnaires related to Investment Manager Evaluation and Security Analysis Due Diligence Questionnaire available on our website for your reference.
Please note that the Treasurer’s Office cannot provide legal advice on whether specific language brings an entity into compliance with any statute. If you have specific legal questions, you should contact your attorney.
All public agencies in Illinois that have public funds in their custody must update their investment policies to reflect that sustainability factors are being incorporated into and considered in investment decision-making related to those funds. Not doing so might expose the company to audit or litigation risk. Those entities subject to the Illinois Pension Code must also file a copy of the updated investment policy with the Department of Insurance within 30 days after adoption.
All public agencies in Illinois that have public funds in their custody must update their investment policies to reflect that sustainability factors are being incorporated into and considered in investment decision-making related to those funds. Not doing so might expose the company to audit or litigation risk.
Yes, a sample can be found on the Illinois State Treasurer’s website. Please note that the Treasurer’s Office cannot provide legal advice on whether specific language brings an entity into compliance with any statute. If you have specific legal questions, you should contact your attorney.
Visit the Treasurer’s Office, The Illinois Funds information, and policy resources to understand objectives, eligible instruments, and how the program is managed.
During our due diligence process, in addition to questions about traditional financial factors and metrics, we also ask prospective managers a variety of questions about the incorporation of sustainability factors. We have a sample Sustainability Due Diligence Questionnaire available on our website for your reference.