The bill targets investment strategies which involve boycotting the gun and ammunition, fossil fuel, mining, timber and agricultural industries.
Companies managing state funds could not factor social causes into their investment strategies if legislation moved forward by an Iowa Senate panel is signed into law.
The bill targets ESG investment strategies, in which investment firms take into account “environmental, social and governance factors” when deciding where to invest money. Senate Study Bill 1094 would prohibit the state from entering into contracts for public fund investments with companies that prioritize social investments or boycotts of certain companies when investing money.
A Senate subcommittee advanced the bill Tuesday.
Investment and banking companies could not limit opportunities for gun and ammunition manufacturers, fossil fuel energy companies, or mining, timber and agricultural producers. Additionally, the bill limits “nonpecuniary social investments,” or investing strategies that considers the impacts of businesses on the environment or in social and political spheres over maximizing returns.
By Robin Opsahl