Background
Activity in Stewardship is guided by the SBI Investment Beliefs. The primary purpose of the Beliefs is to guide the SBI toward sound investing principles related to investing pension funds' assets. In this respect, the Beliefs help provide context for investment decisions, reflecting the investment approach, and acknowledge the SBI's role in supporting the State's broader retirement systems. The most recent investment belief was added in May 2024.
"As long-term institutional investors, our fiduciary duty requires us to consider all material risks and opportunities."
Board Resolutions
SBI Resolution on ESG Initiatives (2020)
SBI Resolution Concerning Reduction of Investments Associated with Thermal Coal Production (2020)
Manager Research
SBI investment staff work with external investment managers to address risks within the manager's investment portfolios and within the managers' organizations themselves. Most managers have a documented environmental, social, and corporate governance integration approach and policies related to diversity. In general, the goal is to assess the quality of these approaches. The team tries to establish consistency in information gathering that will help evaluate managers over the long-term and track changes as they are revealed in subsequent meetings. It is important for managers to evaluate both risks and opportunities prior to making an investment; and add value by improving environmental, social, and corporate governance practices once a company is purchased.