IL HB5268

Requires the University of Illinois Board of Trustees to direct the University of Illinois Foundation to divest endowment fund assets from stocks, securities, and other obligations of fossil fuel companies and their subsidiaries, affiliates, and parent companies.

Defines "fossil fuel company" to include the 200 publicly traded companies with largest fossil fuel reserves, 30 largest public owners of coal-fired power plants, companies with core business in fossil fuel infrastructure or extraction/distribution, and companies receiving more than 20% of gross revenue from fossil fuel operations.

Prohibits the Foundation from investing in prime commercial paper or corporate bonds issued by fossil fuel companies, while allowing de minimis exposure to fossil fuel investments.

Requires the Board of Trustees to eliminate indirect investments (holdings in investment vehicles with more than 1% interest in fossil fuel companies) beginning one year after the effective date, subject to affirmative prudence determinations.

Requires the Foundation to update its written investment policies within 90 days of adoption to comply with these divestment requirements and make policies publicly available.