I 
116TH CONGRESS 
2D SESSION 
H. R. 8960 
To amend the Investment Advisers Act of 1940 to require large asset 
managers to establish Sustainable Investment Policies. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 14, 2020 
Mr. LEVIN of Michigan (for himself, Mr. BRENDAN F. BOYLE of Pennsyl-
vania, Mrs. AXNE, and Mr. GARCI´A of Illinois) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To amend the Investment Advisers Act of 1940 to require 
large asset managers to establish Sustainable Investment 
Policies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Sustainable Invest-
ment Policies Act of 2020’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) There is now incontrovertible evidence that 
ESG factors are financially material. 
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(2) 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 integration. 
(3) Recent policies of the Securities and Ex-
change Commission have had a chilling effect on 
ESG integration and active ownership with a view 
toward advancing a sustainable economy. 
SEC. 3. PURPOSE. 
The purpose of this Act is to require large investment 
advisors to adopt and implement policies to consider Envi-
ronmental, Social, and Governance (ESG) factors when 
making investments. 
SEC. 4. SUSTAINABLE INVESTMENT POLICY OF INVEST-
MENT ADVISERS. 
Section 203 of the Investment Advisers Act of 1940 
(15 U.S.C. 80b–3) is amended by adding at the end the 
following: 
‘‘(o) SUSTAINABLE INVESTMENT POLICY.— 
‘‘(1) IN
GENERAL.—No person may be reg-
istered as an investment adviser under this section 
unless the person files a sustainable investment pol-
icy with the Commission that such person follows in 
carrying out the duties of an investment adviser. 
‘‘(2) CONTENTS.— 
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‘‘(A) IN GENERAL.—A sustainable invest-
ment policy described under paragraph (1) shall 
include policies of the person, with respect to— 
‘‘(i) corporate governance practices by 
entities in which the plan invests, including 
executive compensation, board diversity, 
the independence of board chairs, political 
spending and lobbying disclosure; 
‘‘(ii) characteristics of workforces em-
ployed by entities in which the plan in-
vests, including compensation and benefits, 
health and safety, diversity and demo-
graphics, skills and training, retention and 
turnover, full-time and part-time employ-
ment, and the use of independent contrac-
tors; 
‘‘(iii) labor and human rights compli-
ance by entities in which the plan invests, 
including workers’ freedom of association, 
the right to collectively bargain, and the 
prevention of employment discrimination, 
child labor, and forced labor in company 
operations and supply chains; 
‘‘(iv) the implementation, to the ex-
tent practicable, of practices which en-
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hance diversity and inclusion performance 
within the workforce, senior leadership, 
business procurement, philanthropy and/or 
board of directors; 
‘‘(v) environmental risks to the assets 
and properties of entities in which the 
funds advised by the person invest, includ-
ing— 
‘‘(I) climate risks and contribu-
tions; 
‘‘(II) environmental risks that 
are not related to climate, such as in-
dustrial pollution, habitat destruction, 
and other forms of environmental deg-
radation; 
‘‘(III) 
impact 
to 
species 
endangerment and extinction; and 
‘‘(IV) pollution of land, air, and 
water related to the operation of the 
entities invested in by the plan; pollu-
tion of land, air and water related to 
the operation of the entities in which 
funds advised by the person invest; 
‘‘(vi) due diligence and practices re-
garding supply chain management, includ-
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ing environmental, human rights, and 
worker compensation considerations; and 
‘‘(vii) tax practices of entities in which 
the plan invests, including international 
tax avoidance strategies and tax payment 
disclosure. 
‘‘(3) COMPLIANCE AUDIT.— 
‘‘(A) IN
GENERAL.—Each registered in-
vestment adviser shall contract with an auditor 
(as described in rule 2–10 of section 210.01 of 
title 17, Code of Federal Regulations) to per-
form an annual evaluation of the adviser’s com-
pliance with the sustainable investment policy 
filed with the Commission. 
‘‘(B) REPORT.—An auditor performing an 
evaluation under subparagraph (A) shall file, 
and make publicly available, a report on such 
evaluation to the adviser and the Commission. 
‘‘(4) FIDUCIARY SAFE HARBOR.—The Commis-
sion may, by order, determine that an investment 
adviser has not breached its fiduciary duty with re-
spect to consideration of factors outlined under this 
subsection if the investment adviser is in compliance 
with this subsection.’’. 
Æ 
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