IL HB2460

Establishes the Illinois Sustainable Investing Act requiring public agencies and governmental units to develop and implement sustainable investment policies that incorporate environmental, social, and governance (ESG) factors into investment decision-making.

Requires consideration of five categories of sustainability factors: corporate governance and leadership; environmental; social capital; human capital; and business model and innovation factors, when evaluating investments to maximize financial returns and minimize risk.

Mandates that the State Treasurer, public agencies, and pension fund boards include statements in their investment policies confirming that material sustainability factors are regularly considered within bounds of financial and fiduciary prudence.

Applies sustainability investment requirements to the State Treasurer's investment policy, public funds investment policies, and all pension fund and retirement system investment policies, while exempting financial institution time deposits and processing services.

Defines "sustainability factors" as those with material financial impact on investment safety or performance that complement traditional financial factors and accounting.