NC S737

Prohibits state agencies, political subdivisions, trusts, committees, and commissions from using environmental, social, and governance (ESG) or economically targeted investment (ETI) criteria in hiring, firing, or evaluating employees.

Prohibits consideration of ESG, ETI, or related criteria in the awarding of state contracts, except where allowed by law.

Requires the State Treasurer to consider only pecuniary factors (factors with material effect on financial risk or return) when evaluating investments for state pension plans and funds.

Permits environmental or social considerations as pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories.

Effective upon becoming law.