ESG investing meets the reality of the U.S. political divide – Crain’s*

The Illinois Sustainable Investing Act, passed by the General Assembly and signed into law by Gov. J.B. Pritzker in 2019, provides that public fund investment officers should integrate “material, relevant and useful sustainability factors into their policies, processes and decision-making.” But it leaves them latitude in how they evaluate risk. IMRF, for example, has focused on adding diversity to its managers and their suppliers. And investment officers in Illinois could find money managers picking sides — either casting their lot with red or blue sides of the divide. If that happens, managers worry that it will limit choice, restrict competition and ultimately lead to higher fees.