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

SB 6304 requires Washington State’s Investment Board to incorporate ethical investment standards into its management of public retirement and trust funds. It prohibits investments in companies or activities involving serious human rights violations, weapons production, coal energy, tobacco, environmental harm, or other significant ethical risks (as detailed in Section 2). The bill mandates the Board to assess these risks when making investment decisions, develop public proxy voting guidelines supporting ethical standards, and report annually on how these principles are applied. This directly affects how $100+ billion in public funds are managed, ensuring investments align with state values while still aiming for prudent financial returns. The Board must now consider both financial and ethical risks in its investment strategy.