What will this bill do?

• Prohibits the consideration of environmental, social, governance (ESG) impact criteria in the investment or commitment of public funds for the purpose of obtaining an effect other than a maximized return at a prudent level of risk to the state.

• Provides a loophole to the above prohibition. Social impact investing may take place as long as the state investment board can demonstrate a social investment would provide an equal or superior rate of return compared to a similar investment that is not a social investment.

• Prohibits insurance companies from refusing to insure solely in consideration of ESG criteria, diversity, equity, and inclusion policies, or political and ideological factors.

• Provides a legislative study on the impact of ESG investments in the state of North Dakota.
  
  Read the bill.

Why is this bill needed?

• Environmental Social Governance (ESG) is a political tool that is being used to push businesses and financial institutions to advance progressive ideology in American policy and culture. Social impact investing criteria is used as a way around the ballot box in order to implement radial climate change and social justice policies into law.

• ESG forces companies to take positions on political issues that may not align with or have anything to do with the company’s values or mission.

• ESG advocates the use of shareholder assets to promote political causes while abdicating the fiduciary responsibility to maximize financial returns.

What is the current status of the bill?

HB 1429 was signed into law by Governor Burgum on April 27th.