,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hifj  ,,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 ,financial ,services  
,a ,,bill  ,to amend the ,investment    
,advisers ,act of #aidj to require large
 asset managers to establish            
,sustainable ,investment ,policies4  #a4
 ,short title ,this ,act may be cited as
 the ,sustainable ,investment ,policies 
,act of #bjbj4  #b4 ,findings ,the      
,congress finds the following3 7#a7     
,there is now incontrovertible evidence 
that ,,esg factors are financially      
material4  7#b7 ,decades of policy      
interpretations from the ,department of 
,labor and ,securities and ,exchange    
,commission have created confusion as to
 fiduciaries' obligations with regard to
 ,,esg integration4  7#c7 ,recent       

policies of the ,securities and         
,exchange ,commission have had a        
chilling effect on ,,esg integration and
 active ownership with a view toward    
advancing a sustainable economy4  #c4   
,purpose ,the purpose of this ,act is to
 require large investment advisors to   
adopt and implement policies to consider
 ,environmental1 ,social1 and           
,governance 7,,esg7 factors when making 
investments4  #d4 ,sustainable          
investment policy of investment advisers
 ,section #bjc of the ,investment       
,advisers ,act of #aidj 7#ae ,u4,s4,c4  
#hj;b-#c7 is amended by adding at the   
end the following3  7o7 ,sustainable    
investment policy  7#a7 ,in general ,no 
person may be registered as an          
investment adviser under this section   
unless the person files a sustainable   
investment policy with the ,commission  
that such person follows in carrying out
 the duties of an investment adviser4   
7#b7 ,contents  7,a7 ,in general ,a     
sustainable investment policy described 

under paragraph 7#a7 shall include      
policies of the person1 with respect    
to-- 7i7 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  7ii7 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  7iii7 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  7iv7 the 
implementation1 to the extent           
practicable1 of practices which enhance 

diversity and inclusion performance     
within the workforce1 senior leadership1
 business procurement1 philanthropy     
and_/or board of directors2  7v7        
environmental risks to the assets and   
properties of entities in which the     
funds advised by the person invest1     
including-- 7,i7 climate risks and      
contributions2  7,,ii7 environmental    
risks that are not related to climate1  
such as industrial pollution1 habitat   
destruction1 and other forms of         
environmental degradation2  7,,iii7     
impact to species endangerment and      
extinction2 and  7,,iv7 pollution of    
land1 air1 and water related to the     
operation of the entities invested in by
 the plan2 pollution of land1 air and   
water related to the operation of the   
entities in which funds advised by the  
person invest2  7vi7 due diligence and  
practices regarding supply chain        
management1 including environmental1    
human rights1 and worker compensation   
considerations2 and  7vii7 tax practices

 of entities in which the plan invests1 
including international tax avoidance   
strategies and tax payment disclosure4  
7#c7 ,compliance audit  7,a7 ,in general
 ,each registered investment adviser    
shall contract with an auditor 7as      
described in rule #b-aj of section      
#baj4ja of title #ag1 ,code of ,federal 
,regulations7 to perform an annual      
evaluation of the adviser's compliance  
with the sustainable investment policy  
filed with the ,commission4  7,b7       
,report ,an auditor performing an       
evaluation under subparagraph 7,a7 shall
 file1 and make publicly available1 a   
report on such evaluation to the adviser
 and the ,commission4  7#d7 ,fiduciary  
safe harbor ,the ,commission may1 by    
order1 determine that an investment     
adviser has not breached its fiduciary  
duty with respect to consideration of   
factors outlined under this subsection  
if the investment adviser is in         
compliance with this subsection4  4