,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hiei ,,in ,,the ,,house ,,of ,,representatives ,december #ad1 #bjbj,mr4 ,levin of ,michigan 7for himself1 ,mr4 ,brendan ,f4 ,boyle of ,pennsylvania1 ,mrs4 ,axne1 and ,mr4 ,garca of ,illinois7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to amend the ,employee ,retirement ,income ,security ,act of #aigd to require retirement plans to establish ,sustainable ,investment ,policies4 #a4 ,short title ,this ,act may be cited as the ,retirees ,sustainable ,investment ,policies ,act of #bjbj4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,fiduciaries for retirement plans should-- 7,a7 incorporate all relevant factors1 including environmental1 social1 and governance 7hereinafter in this ,act referred to as ,,esg7 factors1 into investment analysis and decision-making processes1 consistent with the investment time horizons of plan participants and beneficiaries2 7,b7 encourage the adoption of best practices for ,,esg performance in the companies or other entities in which they invest2 7,c7 consider plan participants' and beneficiaries' sustainability-related interests and preferences when making investment decisions2 7,d7 consider the impact of plan investments on the stability and resilience of the financial system2 and 7,e7 disclose how they have implemented these commitments4 7#b7 ,there is now incontrovertible evidence that ,,esg factors are financially material to investors and relevant to investment decisionmaking4 #c4 ,purpose ,the purpose of this ,act is to require retirement and welfare benefit plans that are covered by the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq471 to adopt and implement policies in consideration of ,,esg factors when making investment decisions1 because considering ,,esg factors is relevant to the fiduciary duty of prudence1 as such factors help ensure investments' long-term sustainability4 #d4 ,amendments to the ,employee ,retirement ,income ,security ,act of #aigd 7a7 ,disclosure of sustainable investment policies ,section #ajb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajbb7 is amended in subsection 7b71 by inserting the sustainable investment policy of the plan 7as established under section #djb7;b77#e772 after collective bargaining agreement24 7b7 ,establishment of sustainable investment policy ,section #djb of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajb7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#c71 by striking and2 7,b7 in paragraph 7#d71 by striking the period and insert 1 and2 and 7,c7 by inserting after paragraph 7#d7 the following3 7#e7 provide a sustainable investment policy of the plan in accordance with subparagraph 7d7 unless the plan elects to rely on the sustainable investment policies of the plan's fiduciaries as defined by section #c7ch7 2 and 7#b7 by adding after subsection 7c7 the following3 7d7 7#a7 ,a sustainable investment policy under subsection 7b77#e7 shall include guidelines with respect to-- 7,a7 corporate governance practices by entities in which the plan invests1 including executive compensation1 board diversity1 the independence of board chairs1 political spending and lobbying disclosure2 7,b7 characteristics of workforces employed by entities in which the plan invests1 including compensation and benefits1 health and safety1 diversity and demographics1 skills and training1 retention and turnover1 full-time and part-time employment1 and the use of independent contractors2 7,c7 labor and human rights compliance by entities in which the plan invests1 including workers' freedom of association1 the right to collectively bargain1 and the prevention of employment discrimination1 child labor1 and forced labor in company operations and supply chains2 7,d7 the implementation1 to the extent practicable1 of practices which enhance diversity and inclusion performance within the workforce1 senior leadership1 business procurement1 philanthropy1 and_/or board of directors2 7,e7 environmental risks to the assets and properties of entities invested in by the plan and related disclosures1 including-- 7i7 climate risks and contributions2 7ii7 environmental risks that may not be related to climate1 such as industrial pollution1 habitat destruction1 and other forms of environmental degradation2 7iii7 impact to species endangerment and extinction2 and 7iv7 pollution of land1 air1 and water related to the operation of the entities invested in by the plan2 7,f7 due diligence and practices regarding supply chain management1 including environmental1 human rights1 and worker compensation considerations2 and 7,g7 tax practices of entities in which the plan invests1 including international tax avoidance strategies and tax payment disclosure4 7#b7 ,a plan subject to the requirements of section #djb7;d77#a7 shall conduct a review of the sustainable investment policy under subsection 7b77#e7 on an annual basis4 7#c7 ,section #djd7;a7 shall not be construed to prohibit a plan fiduciary from doing the following3 7,a7 ,in choosing among investments with commensurate degrees of risk and rates of return1 to select one or more such investments based on environmental1 social1 and governance considerations4 7,b7 ,to monitor or dispose of a plan investment alternative based on considerations that include environmental1 social1 and governance considerations4 7,c7 ,vote proxies in accordance with the plan's proxy voting guidelines4 4 7c7 ,qualified investment alternatives ,section #djd7;c77#e7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77 is amended by adding at the end the following3 7#e7 ,a qualified default investment alternative 7as defined in section #beej4djd;c-#e7;e7 of title #bi1 ,code of ,federal ,regulations1 or a successor regulation7 may include an investment alternative-- 7,a7 with an environmental1 social1 and governance investment mandate2 or 7,b7 that was selected1 in part1 on the basis of an environmental1 social1 and governance consideration4 4