The state of Indiana has over $40 billion in pension assets under management, which are invested for the exclusive benefit of its more than 500,000 members and their families. State law requires these assets to be invested and managed “solely in the interests of the beneficiaries.”
Representative Jack Jordan (R-Bremen) said in a recent release, there is a growing trend of ESG or environmental, social and governance investing, which favors companies with certain standards or political agendas, including those that boycott critical agriculture, fossil fuel and firearm industries.
Rep. Jordan said, “This session, I co-authored legislation that would ensure Indiana’s pension system focuses exclusively on maximizing returns, and not positions on social, political, ideological or other non-financial interests.”
The bill would only prevent the Indiana Public Retirement System from using any ESG investing practices for the state’s pension funds if those investments are for non-financial purposes. This would protect divestment from industries related to firearms manufacturing and related services, oil, gas, lumber, mining, agriculture, and meat production-related businesses. It would also protect divestment from companies that contract with U.S. Immigration and Customs Enforcement.
Rep. Jordan said, “Companies managing Indiana’s pensions should not boycott industries that are critical to Hoosiers, and vital to Indiana’s economy and security.”
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