Retirement: investments; investments in environmental, social, and governance funds; prohibit. Amends sec. 13 of 1965 PA 314 (MCL 38.1133).

HB 5237 prohibits Michigan public employee retirement systems from investing in environmental, social, and governance (ESG) funds unless those investments offer comparable financial returns to other options. The bill amends Section 13 of the Public Employee Retirement System Investment Act to require investment fiduciaries to consider *only* financial factors (like risk and return) when making decisions, explicitly excluding non-financial social, political, or ideological objectives. This directly affects retirement systems managing funds for state employees, including teachers and public workers, by restricting their ability to prioritize ESG criteria in investment choices. The key provision clarifies that ESG considerations cannot be used as a primary factor unless they demonstrably align with financial performance goals.