Freedom to Invest in a Sustainable Future Act

Bill: 118-hr-1119
Sponsor: full_name: Rep. DelBene, Suzan K. [D-WA-1]
Introduced: 2023-02-21
Policy area: Labor and Employment
Latest action: action_date: 2023-02-21
text: Referred to the House Committee on Education and the Workforce.

Summaries:
action_date: 2023-02-21
action_desc: Introduced in House
text: <p><strong></strong><b>Freedom to Invest in a Sustainable Future Act</b></p> <p>This bill provides statutory authority for fiduciaries of employer-sponsored retirement plans to consider environmental, social, governance, or similar factors when making investment decisions.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 1119 IN THE HOUSE OF REPRESENTATIVES February 21, 2023 Ms. DelBene (for herself, Mr. Casten , Mr. Vargas , and Mr. Phillips ) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To amend the Employee Retirement Income Security Act of 1974 to permit retirement plans to consider certain factors in investment decisions.

1. Short title This Act may be cited as the Freedom to Invest in a Sustainable Future Act . 2. ERISA amendments Subsection (a) of section 404 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104 ) is amended by adding at the end the following new paragraph: (3) (A) Provided that a fiduciary discharges the fiduciary's duties with respect to a plan in a manner otherwise consistent with this subsection, a fiduciary may— (i) consider environmental, social, governance, or similar factors, in connection with carrying out an investment decision, strategy, or objective, or other fiduciary act; and (ii) consider collateral environmental, social, governance, or similar factors as tie-breakers when competing investments can reasonably be expected to serve the plan’s economic interests equally well with respect to expected return and risk over the appropriate time horizon. (B) In a case described in clause (i) or (ii) of subparagraph (A), a fiduciary shall not be required to maintain any greater documentation, substantiation, or other justification of the fiduciary’s actions relating to such fiduciary act than is otherwise required under this part. (C) Nothing in this part shall preclude an investment selected in accordance with clause (i) or (ii) of subparagraph (A) from being treated as a default investment or a component of such a default investment (as described in regulations issued by the Secretary under subsection (c)(5)(A)), if such investment would otherwise qualify for such treatment under such regulations. .