,i #aag? ,,congress #a/ ,session ,h4 ,r4 #cfjd ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #bh1 #bjba ,mr4 ,lev9 ( ,mi*igan 7= himself1 ,mrs4 ,axne1 ,mr4 ,br5dan ,f4 ,boyle ( ,p5nsylvania1 & ,mr4 ,g>ca ( ,ill9ois7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ,labor ,a ,,bill ,to am5d ! ,employee ,retirem5t ,income ,security ,act ( #aigd to enable consid]ation & disclosure by retirem5t plans ( ,su/a9able ,inve/m5t ,policies4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,retirees ,su/a9able ,inve/m5t ,opportunities ,act ( #bjba4 #b4 ,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 ,!re is n[ incontrov]tible evid5ce t environm5tal1 social1 & gov]nance 7h]e9aft] 9 ?is ,act ref]r$ to z ,,esg7 factors c h mat]ial & sub/antial effects on inve/m5t p]=mance4 7#b7 ,! ,unit$ ,/ates ,dep>tm5t ( ,labor :i* is responsible = adm9i/]+ & en=c+ ! ,employee ,retirem5t ,security ,act ( #aigd has hi/orically recogniz$ t retirem5t plans may make economically t>get$ inve/m5ts 7,e,t,is71 t is1 inve/m5ts t (f] ! pot5tial = economic b5efits1 su* z local job creation1 community economic developm5t1 & af=dable & work=ce h\s+ con/ruction1 9 addition to inve/m5t returns1 provid$ su* inve/m5ts o!rwise comply ) ,,erisa's fiduci>y requirem5ts4 7#c7 ,,esg & ,,eti-relat$ factors are ref]r$ to 9 ?is ,act z su/a9ability consid]ations & inve/m5ts guid$ by su/a9ability consid]ations are ref]r$ to z su/a9able inve/m5ts4 ,su/a9able inve/m5ts h ! pot5tial to contribute to ! long-t]m well-be+ & resili5ce ( individuals & communities 9 ?is nation & ar\nd ! _w :ile e>n+ inve/m5t returns comp>able to or bett] ?an inve/m5ts ) simil> risk t d n take ^! factors into acc\nt4 7#d7 ,su/a9able inve/+ is n[ among ! fa/e/ gr[+ segm5ts ( ! inve/m5t indu/ry ) broad & gr[+ int]e/ f bo? individual inve/ors & in/itutional asset manag]s4 ,nev]!less1 su/a9able inve/m5ts are virtually abs5t f ,,erisa-regulat$ retirem5t plans 9 ! ,unit$ ,/ates4 7#e7 ,retirem5t plans & p>ticipants 9 individual acc\nt retirem5t plans %\ld h ! opportunity to make & hold su/a9able inve/m5ts1 provid$ ,,erisa's fiduci>y requirem5ts are o!rwise met4 7#f7 ,accord+ly1 fiduci>ies = retirem5t plans %\ld-- 7,a7 incorporate all relevant factors1 includ+ su/a9ability-relat$ factors1 into inve/m5t analysis & decision-mak+ processes1 consi/5t ) ! inve/m5t "t horizons ( plan p>ticipants & b5efici>ies2 7,b7 be p]mitt$ to consid] factors relevant to su/a9ability1 :e!r or n !y c be demon/rat$ to be f9ancially mat]ial1 provid$ do+ s does n dim9i% anticipat$ inve/m5t returns or increase inve/m5t risk & is o!rwise consi/5t ) ,,erisa's fiduci>y requirem5ts2 7,c7 enc\rage ! adoption ( be/ practices = su/a9ability p]=mance & su/a9ability impacts 9 ! companies or o!r entities 9 :i* !y inve/2 7,d7 consid] plan p>ticipants' & b5efici>ies' su/a9ability-relat$ int]e/s & pref]5ces :5 mak+ inve/m5t decisions2 7,e7 consid] ! impact ( plan inve/m5ts on ! /ability & resili5ce ( ! f9ancial sy/em & on broad m>ket returns z a result ( ! su/a9ability *>act]i/ics ( ^? inve/m5ts2 7,f7 consid] p>ticipation 9 %>ehold] engagem5t & proxy activities1 policy advocacy & simil> actions bas$ on su/a9ability consid]ations2 & 7,g7 disclose h[ !y h implem5t$ ^! commitm5ts4 #c4 ,purpose ,! purpose ( ?is ,act is to enable retirem5t & welf>e b5efit plans & p>ticipants 9 individual acc\nt retirem5t plans t are cov]$ by ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 to make & hold su/a9able inve/m5ts1 consi/5t ) ! fiduci>y /&>ds1 requirem5ts1 & proc$ures ( said ,employee ,retirem5t ,income ,security ,act4 #d4 ,am5dm5ts to ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7a7 ,disclosure ( su/a9able inve/m5t policies ,section #ajb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbb7 7,,erisa7 is am5d$ 9 subsection 7b71 by ins]t+ a /atem5t ( :e!r or n ! plan has adopt$ a su/a9able inve/m5t policy pursuant to section #djb7;b77#e7 ( ,,erisa2 aft] collective b>ga9+ agreem5t24 7b7 ,e/abli%m5t ( su/a9able inve/m5t policy ,section #djb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajb7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 7#c71 by /rik+ &2 7,b7 9 p>agraph 7#d71 by /rik+ ! p]iod & ins]t 1 &2 & 7,c7 by ins]t+ aft] p>agraph 7#d7 ! foll[+3 7#e7 adopt a su/a9able inve/m5t policy ( ! plan 9 accordance ) subp>agraph 7d71 provid$ a plan may elect n d s if x gives notice to plan p>ticipants or b5efici>ies 9 writ+ ( su* election 2 & 7#b7 by add+ aft] subsection 7c7 ! foll[+3 7d7 7#a7 ,a su/a9able inve/m5t policy "u subsection 7b77#e7 %all address su/a9ability consid]ations includ+1 )\t limitation1 ! foll[+3 7,a7 ,economically t>get$ inve/m5t consid]ations includ+1 ! pot5tial = a*iev+ economic b5efits1 su* z local job creation1 community economic developm5t1 & af=dable & work=ce h\s+ con/ruction1 9 addition to inve/m5t returns4 7,b7 ,social consid]ations includ+-- 7i7 *>act]i/ics ( work=ces employ$ by entities 9 :i* ! plan inve/s1 includ+ comp5sation & b5efits1 heal? & safety1 div]sity & demographics1 skills & tra9+1 ret5tion & turnov]1 full-"t & "p-"t employm5t1 & ! use ( indep5d5t contractors2 7ii7 labor & human rights compliance by entities 9 :i* ! plan inve/s1 includ+ work]s' fre$om ( association1 ! "r to collectively b>ga91 & ! prev5tion ( employm5t discrim9ation1 *ild labor1 & =c$ labor 9 company op]ations & supply *a9s2 7iii7 due dilig5ce & practices reg>d+ supply *a9 managem5t1 includ+ environm5tal1 human rights1 & work] comp5sation consid]ations2 & 7iv7 ! implem5tation1 to ! ext5t practicable1 ( practices :i* enhance div]sity & inclusion )9 ! work=ce1 s5ior lead]%ip1 bus9ess procurem5t1 & philan?ropy4 7,c7 ,environm5tal consid]ations includ+-- 7i7 ! pot5tial to r$uce & ultimately elim9ate net gre5h\se gas emissions associat$ ) bus9ess activities & to mitigate exposure to climate-relat$ risks to ! bus9esses1 assets & prop]ties ( entities inve/$ 9 by ! plan2 7ii7 ! pot5tial to mitigate o!r climate-relat$ & associat$ environm5tal h>ms & risks1 su* z indu/rial pollution1 habitat de/ruction1 de=e/ation1 species endang]m5t & ext9ction1 & o!r =ms ( environm5tal degradation2 7iii7 ! pot5tial to address & rectify issues ( environm5tal ju/ice & ! inequitable environm5tal impacts ( c]ta9 bus9ess op]ations on hi/orically disadvantag$ communities2 & 7iv7 ! pot5tial to provide work]s affect$ by ! %ift to a l[ c>bon economy ) a j transition by creat+ dec5t "w & quality jobs4 7,d7 ,gov]nance consid]ations includ+-- 7i7 corporate gov]nance practices by entities 9 :i* ! plan inve/s1 includ+ executive comp5sation1 bo>d div]sity1 work] bo>d repres5tation & codet]m9ation1 ! indep5d5ce ( bo>d *airs1 political sp5d+ & lobby+ disclosure2 & 7ii7 tax practices ( entities 9 :i* ! plan inve/s1 includ+ int]national tax avoidance /rategies & tax paym5t disclosure4 7,e7 ,o!r relevant economically t>get$ inve/m5t1 environm5tal1 social1 & gov]nance consid]ations & factors4 7#b7 ,a plan %all be deem$ to h adopt$ a su/a9able inve/m5t policy = ! purposes ( subsection 7b77#e7 if x incorporates ! su/a9ability consid]ations set =? 9 subsection 7d77#a7 into a previ\sly adopt$ inve/m5t policy ( ! plan or if ! plan elects to be gov]n$ by a su/a9able inve/m5t policy o!rwise meet+ ! requirem5ts ( subsection 7d77#a7 adopt$ by a ?ird-p>ty fiduci>y to ! plan4 7#c7 ,a plan t has adopt$ a su/a9able inve/m5t policy pursuant to subsection 7b77#e71 includ+ plans rely+ on subsection 7d77#b71 %all conduct a review ( su* policy on an annual basis4 4 7c7 ,utilization ( c]ta9 su/a9ability consid]ations ,section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ 9 subsection #djd7;a7 by add+ aft] subsection 7#b7 ! foll[+3 7#c7 ,?is subsection #djd7;a7 %all n be con/ru$ to prohibit a plan fiduci>y f do+ ! foll[+3 7,a7 ,9 *oos+ among inve/m5ts ) comp>able degrees ( risk & rates ( return1 select+ "o or m su* inve/m5ts bas$ on "o or m su/a9ability consid]ations z set =? 9 section #djb7;d77#a71 reg>dless ( :e!r su* consid]ations are det]m9$ to be f9ancially mat]ial4 ,= ! purposes h]e(1 ! det]m9ation t inve/m5ts h comp>able degrees ( risk & anticipat$ rates ( return %all be a det]m9ation t a prud5t man act+ 9 l capacity & famili> ) su* matt]s c\ld reasonably be expect$ to make on a =w>d-look+ basis4 7,b7 ,incorporat+ su/a9ability consid]ations into ! monitor+ ( or decisions reg>d+ ! disposition ( plan inve/m5ts4 7,c7 ,ex]cis+ proxy vot+ rights 9 accordance ) ! plan's proxy vot+ guidel9es :i* may include su/a9ability consid]ations4 7,d7 ,consid]+ z f9ancially mat]ial to retirem5t b5efits ! pot5tial = increas$ contributions to ! plan result+ f a plan inve/m5t4 4 7d7 ,individual acc\nt plans ,section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ 9 subsection #djd7;c77#a7 by add+ aft] subsection 7,c7 ! foll[+3 7,d7 ,9 select+ inve/m5t alt]natives = individual acc\nts1 includ+ inve/m5t alt]natives meet+ ! requirem5ts ( section #djd7;c77#e7 ( ?is title1 a plan fiduci>y may include inve/m5t alt]natives select$ 9 "p on ! basis ( su/a9ability consid]ations z set =? 9 section #djb7;d77#a7 reg>dless ( :e!r su* consid]ations are det]m9$ to be f9ancially mat]ial1 provid$ any su* alt]native is det]m9$ to h a degree ( risk & anticipat$ rate ( return comp>able to o!r inve/m5ts ( simil> type det]m9$ by ! fiduci>y to be available & appropriate = inclusion 9 ! plan4 ,= ! purposes h]e(1 ! det]m9ation t inve/m5ts h comp>able degrees ( risk & rates ( return %all be a det]m9ation t a prud5t man act+ 9 l capacity & famili> ) su* matt]s c\ld reasonably be expect$ to make on a =w>d-look+ basis4 4 7e7 ,e/abli%m5t ( su/a9able inve/m5t policy te*nical assi/ance program ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ! ,assi/ant ,secret>y ( ,labor = ,employee ,b5efits %all e/abli% a te*nical assi/ance program to provide educational mat]ials & te*nical assi/ance to plans to comply ) ! am5dm5ts made by ?is ,act4