IL SB3457

Requires every Illinois pension fund (except Downstate Police and Downstate Firefighter funds) to develop a climate change risk minimization policy by December 31, 2017.

Policy must assess financial risks to pension fund investments from different levels of climate change as defined by the United Nations Framework Convention on Climate Change, considering impacts like severe drought, coastal flooding, and intense hurricanes.

Policy must document data sources used for projections, including insurance company projections, UN climate data, and U.S. Environmental Protection Agency information.

Permits pension funds to establish voting policies for corporate equity shareholders to advance corporate policies that reduce carbon emissions and minimize long-term climate-related risks to fund assets.

Requires annual policy updates and publication on the pension fund website, with previous versions retained for 5 years; no state reimbursement required for implementation; effective immediately upon enactment.