IL HB2427

Requires all Illinois pension funds (except Downstate Police and Firefighter funds) to develop a climate change risk minimization policy by December 31, 2023.

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, using data from insurance companies, the UN, and the Environmental Protection Agency.

Policy must evaluate scope and financial impact of climate-related events including severe drought, coastal flooding, and intense hurricanes on pension fund holdings.

Permits pension funds to establish voting policies for corporate equities to support shareholder resolutions and director elections that minimize long-term climate-related risks, including votes for corporate carbon emission reduction policies.

Requires annual policy updates and publication on pension fund websites, with previous versions maintained for 5 years; implementation requires no state reimbursement.