Fossil Fuel Divestment Act

Summary

Investments in fossil fuels are driving climate change, and they are becoming increasingly risky with significant financial liabilities. The state of Illinois can be both a climate leader and protect the health of its pension funds by divesting from fossil fuels. We are, therefore, asking the state of Illinois to protect pension funds and provide more transparency to the holders.

The Bills

The Fossil Fuel Divestment Act HB 3961 / SB 0130 was introduced in the 2025 session of the General Assembly by Rep. Will Guzzardi in the House and by Sen. Adriane Johnson in the Senate.. The bills will require:

  1. The State's public pensions to immediately cease new investment in publicly-traded fossil fuels, and 1 year after the effective date of the Fossil Fuel Divestment Act, the funds shall not invest in any private assets with fossil fuel exposure.

  2. The State to divest its current public holdings in the fossil fuel industry within 5 years of the effective date of the Act, and within 10 years for private assets.

  3. The adoption of written investment policies by pension boards of trustees to align with this Act; any updates to the policies must align with the Act.

  4. Review and publicly disclose pension system assets, whether publicly traded or private, to identify those related to the fossil fuel industry.

  5. Quarterly public postings regarding pension fund holdings.

  6. Annually report on the climate-related risks of the pension system’s investments.

Supporters

The Illinois Fossil Fuel Divestment Campaign has the support of 350 Chicago, Third Act Illinois, The Climate Reality Project Chicago Metro Chapter, the Illinois Environmental Council, Indivisible and many other climate and environmental groups.

Add Your Support

Please add your support to the Climate Safe Pensions Illinois Campaign.