The Sustainable Investing Act
Idea Category: Climate Change
Problem
Sustainable investing reverses the trend of focusing narrowly on financial results and instead takes a holistic view of investment. This is appropriate given the wide range of risks from climate change and other social factors that have and will continue to impact corporate performance. More than four-fifths of companies anticipate being impacted by climate change. Impacts will be felt across industries in a variety of ways, from logistics interruptions to increased operating costs to more limited resource availability and stranded assets. With a sustainable investment policy, public fund managers will not be caught between their responsibility to maximize investment returns and their responsibility to be good stewards of their communities.
Solution
Investment policy can align financial interests to address climate risks. By integrating relevant factors into decision-making, public fund managers minimize risk, maximize returns and meaningfully impact corporate, social and environmental outcomes. This Act codifies sustainable investing as a best practice. It enhances fund managers’ ability to fulfill their fiduciary duties by improving portfolio performance while benefiting our communities and the world by investing with regard for climate risks and social impacts. From our framework, public fund managers can develop tailored sustainable investment policies along with the specified factors for consideration, including climate and environmental risks, social impacts and firm governance.
More Idea’s From Mike Frerichs
Non-Profit Investment Pool
Idea Category: 2025 Ideas Challenge, Economic Opportunity & Affordability | Funding Source: ARP
Infrastructure and Housing Impact Fund
Idea Category: 2025 Ideas Challenge, Economic Opportunity & Affordability, Remove term: Building & Development / Economic Opportunity & Affordability Building & Development | Funding Source: ARP
Student Empowerment Fund
Idea Category: 2025 Ideas Challenge, Economic Opportunity & Affordability | Funding Source: ARP
Illinois Treasurer Michael Frerichs Establishes Fund for Infrastructure and Economic Growth
Idea Category: Infrastructure | Funding Source: ARP
Raising The Bar: Treasurer Frerichs’ Responsible Investing Platform
Idea Category: Smart Government | Funding Source: ARP
New York Assemblymember Nily Rozic's Flood Prevention Efforts
New York Assemblymember Nily Rozic is championing policy to strengthen flood prevention efforts, responding to...
Providence Mayor Brett Smiley Cut the Ribbon on the City’s New and Improved India Point Park
Providence Mayor Brett Smiley cut the ribbon on the city’s new and improved India Point...
