Sec. 2. (a) As used in this chapter, “ESG commitment” means an action taken or a factor considered by a service provider:

(1) with respect to or including the system‘s assets; and

Terms Used In Indiana Code 5-10.2-14-2

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Board: as used in this article , means the board of trustees of the Indiana public retirement system established by Indiana Code 5-10.2-1-1
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • service provider: means investment managers and proxy advisors to the system. See Indiana Code 5-10.2-14-4
  • system: refers to the Indiana public retirement system established by Indiana Code 5-10.2-14-5
  • United States: includes the District of Columbia and the commonwealths, possessions, states in free association with the United States, and the territories. See Indiana Code 1-1-4-5
(2) with the nonfinancial purpose to further social, political, or ideological interests based on evidence indicating the purpose.

     (b) The term defined in subsection (a) includes a commitment to further, through portfolio company engagement or board or shareholder votes, any of the following for nonfinancial purposes beyond the applicable law requirements:

(1) Eliminating, reducing, offsetting, or disclosing greenhouse gas emissions.

(2) Instituting or assessing:

(A) corporate board;

(B) employment;

(C) composition;

(D) compensation; or

(E) disclosure;

criteria that incorporate characteristics protected under IC 22-9.

(3) Divesting from, limiting investment in, or limiting the activities or investments of a company that does any of the following:

(A) Fails to meet or does not commit to environmental standards or disclosures.

(B) Engages in, facilitates, or supports the manufacture, import, distribution, marketing or advertising, sale, or lawful use of firearms, ammunition, or component parts and accessories of firearms or ammunition.

(C) Contracts with the United States Immigration and Customs Enforcement for the provision of federal immigration detention centers or support services related to the implementation of federal immigration and border security laws, regulations, and policies.

(D) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel based energy, timber, mining, agriculture, and food animal production.

As added by P.L.206-2023, SEC.1.

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