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Bill

HB 2662

Ensuring that responsible principles of investing are incorporated into the investment decision making of the Washington state investment board.

2025-2026 Regular Session Introduced by April Berg and 31 co-sponsors

Bill requires Washington State Investment Board to apply "responsible investing principles" to pension fund decisions, potentially reshaping investment criteria beyond traditional financial metrics.

First reading, referred to Appropriations.
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Bill Summary · HB 2662

Legislative bill overview

HB 2662 directs the Washington State Investment Board to incorporate "responsible principles of investing" into its investment decision-making processes. The bill requires the board to consider these principles when making investment choices, though the specific definition of "responsible principles" would likely be clarified through implementation or additional rulemaking.

Why is this important

The Washington State Investment Board manages billions in public pension and trust funds, so its investment criteria directly affect returns for retirees and public employees. This bill would potentially shift how the state evaluates investments beyond traditional financial metrics, which could influence portfolio performance, fund sustainability, and alignment with state policy goals.

Potential points of contention

  • Vague definition: The bill doesn't explicitly define "responsible principles of investing," leaving interpretation to the board and potentially creating uncertainty about what investments qualify or don't qualify
  • Financial performance concerns: Critics may argue that non-financial criteria could reduce returns or increase costs, ultimately harming pension beneficiaries if the board prioritizes social/environmental goals over maximizing fund value
  • Political disagreement: Different groups will likely dispute what constitutes "responsible" investing—whether it includes environmental, social, governance (ESG) criteria, fossil fuel divestment, or other specific policies

Compiled from official sources — confirm details with the bill’s official record.

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