Background
The primary mission of the Minnesota State Board of Investment (SBI) is to maintain the long-term viability of the retirement plans for which it invests. Our fiduciary duty serves as the touchstone for all investment decisions undertaken by the SBI, as codified in Minnesota Statutes, Chapter 11A and Chapter 356A. Among other things, our fiduciary duty requires us to consider all material risks and opportunities for the benefit of the retirement funds under our management.
Consistent with our fiduciary duty, the SBI has adopted a measured and pragmatic approach to carefully considering and integrating relevant factors that affect long-term value into our organization and framework. Given the complexity of the underlying issues, we expect our Stewardship efforts to evolve thoughtfully over time, as appropriate, to create an enduring framework that is in keeping with our mission.
Stewardship at the SBI includes proxy voting, engagement with portfolio companies, and monitoring of governance practices that may affect risk and long-term performance.
These activities are guided by a set of Investment Beliefs that provide additional context for SBI actions, reflect our investment values, and acknowledge our role in supporting the State’s broader retirement systems. In 2017, the SBI adopted its Investment Belief that “utilizing engagement initiatives to address environmental, social, and governance issues can lead to positive portfolio and governance outcomes.”
In 2024, the SBI further expanded its Investment Beliefs to reflect its ongoing commitment to prudent stewardship of the funds entrusted to it by acknowledging our role in addressing all material risks and opportunities that could impact the portfolio. This belief emphasizes that the SBI’s investment approach remains forward-looking, adaptive, and rooted in sound analysis of all considerations, whether they arise from market conditions, economic shifts, technological change, or other structural forces shaping the investment landscape.
The SBI has devoted additional resources, worked to integrate all material risks and opportunities into its processes, and engaged with numerous industry partners to enhance our approach to stewardship.
In addition, to support its stewardship activities, the SBI maintains an active membership role in several investor organizations such as, Council of Institutional Investors (CII), Investor Coalition for Equal Votes (ICEV), and Institutional Limited Partners Association. The SBI views participation in these groups as important to fostering collaboration, sharing best practices, and providing a diverse perspective on key issues.
As a signatory to the Principles for Responsible Investment (PRI), the SBI has committed to considering a broad range of material factors in its investment analysis and decision-making. To carry out this commitment, the SBI regularly evaluates how its managers consider material risks and long-term factors as part of their investment due diligence at the individual investment level.
Board Resolutions
SBI Resolution on ESG Initiatives (2020)
SBI Resolution Concerning Reduction of Investments Associated with Thermal Coal Production (2020)