IL HB1605

Requires every Illinois pension fund (except Downstate Police and Firefighter funds) to develop a climate change risk minimization policy by December 31, 2020.

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

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

Allows pension funds to establish voting policies on shareholder resolutions and director elections for corporate equities to advance climate risk reduction policies, including voting for carbon emission reduction commitments.

Requires annual policy updates and publication on pension fund websites, with previous versions kept available for 5 years; implementation occurs without state reimbursement.