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HB 5072

SUSTAINABLE INVESTING-ACTIONS

104th Regular Session Introduced by Dan Didech and 2 co-sponsors

Illinois law would recognize ESG factors in investments as lawful activities, shield state resources from out-of-state liability attempts, and let Illinois residents sue over forei

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 5072

Bill Summary: HB5072 (104th Illinois General Assembly)

Title: Sustainable Investing - Actions

Jurisdiction: Illinois

Session: 2025-2026

Status: Introduced February 10, 2026; referred through Financial Institutions and Licensing Committee, Rules Committee, and currently on Second Reading as of April 2026. Primary sponsors: Rep. Ann M. Williams; Co-sponsors: Rep. Dan Didech, Rep. Rita Mayfield.

1) Main purpose and intent

  • To affirm and expand Illinois’ framework for sustainable investing by recognizing environmental, social, and governance (ESG) factors as relevant to the performance and safety of public funds and investments.
  • To protect Illinois residents who engage in lawful sustainable investment activity from out-of-state or other-state actions that seek to impose liability for such activity.
  • To establish a clear choice of law for sustainable investing disputes, and to provide a private right of action for Illinois residents harmed by actions in other states that penalize lawful sustainable investing.

2) Key provisions and changes

  • Amendments to the Illinois Sustainable Investing Act (ISA):

    • Section 5 (Findings and Purpose): Reaffirms that sustainability factors can be indicative of long-term investment value and fiduciary duty, and that both public and private entities may consider these factors.
    • Section 10 (Definitions): Adds and clarifies definitions critical to the act, including:
    • Investment manager, investment policy, lawful sustainable investment activity, proxy proposal, public agency, public funds, sustainability factors, etc.
    • Section 25 (Conflict of Law): Establishes that Illinois law governs in any case or controversy related to lawful sustainable investment activity.
    • Section 30 (Prohibited State Actions): Prohibits Illinois state resources from being used to assist or support out-of-state parties seeking to impose liability for lawful sustainable investment activity, except where required by Illinois or federal law.
    • Section 35 (Right of Action): Creates a private cause of action for Illinois residents who have judgments entered against them in another state based on lawful sustainable investment activity permitted under Illinois law. Key features:
    • If a judgment from another state is based on such activity, the Illinois resident may sue the party that brought the action or sought enforcement.
    • The action must be filed within 2 years of the violation.
    • Potential damages and costs may include actual damages, the amount of the foreign judgment, and attorney’s fees, expert fees, and litigation costs as allowed by the court.
    • The act excludes judgments based on contract (where Illinois would recognize a similar claim) or where no acts occurred in Illinois.

  • Definitions align with prior ISA language and build upon P.A. 101-473 and P.A. 103-324, with updates to reflect current standards on sustainable investing and proxy-related activities.

3) Who or what would be affected

  • Public agencies, public funds, and investment managers operating within Illinois, as well as private entities engaging in lawful sustainable investment activity in Illinois.
  • Individuals residing or domiciled in Illinois who engage in sustainable investing activities that are lawful under Illinois and federal law.
  • Out-of-state actors who seek to impose liability on Illinois residents for lawful sustainable investment activity (the bill seeks to shield Illinois resources and provide a legal remedy for residents harmed by such actions).

4) Procedural and timeline aspects

  • Effective provisions: If enacted, the State would apply Illinois law to disputes arising from lawful sustainable investment activity undertaken within the state.
  • Prohibited actions: The State shall not expend or allocate resources to support efforts to impose liability for lawful sustainable investing activity, except where necessary to comply with law.
  • Right of action timeline: For judgments from other states, Illinois residents have 2 years to bring a civil action in state circuit court or as a supplemental claim in federal court.
  • Remedial possibilities: Successful plaintiffs may recover actual damages (including the foreign judgment amount), court costs, and reasonable attorney’s fees, plus related litigation expenses.

5) Practical implications

  • Strengthens Illinois’ stance that sustainable investing can be a legitimate, legally protected activity under state law, potentially encouraging more robust incorporation of ESG considerations into public and private investment decisions.
  • Provides a legal shield against out-of-state actions penalizing lawful sustainable investing, and creates a defined avenue for Illinois residents to seek redress if they are targeted by such actions.
  • Could influence how asset managers, public funds, and private entities approach proxy voting, governance research, and sustainability-related investment analysis in Illinois.

If you’d like, I can provide a side-by-side comparison with the prior Illinois Sustainable Investing Act language or a plain-language FAQ for readers.

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

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