1. Short title This Act may be cited as the Sustainable Investment Policies Act of 2020 . 2. Findings The Congress finds the following: (1) There is now incontrovertible evidence that ESG factors are financially material. (2) Decades of policy interpretations from the Department of Labor and Securities and Exchange Commission have created confusion as to fiduciaries’ obligations with regard to ESG integration. (3) Recent policies of the Securities and Exchange Commission have had a chilling effect on ESG integration and active ownership with a view toward advancing a sustainable economy. 3. Purpose The purpose of this Act is to require large investment advisors to adopt and implement policies to consider Environmental, Social, and Governance (ESG) factors when making investments. 4. Sustainable investment policy of investment advisers Section 203 of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–3 ) is amended by adding at the end the following: (o) Sustainable investment policy (1) In general No person may be registered as an investment adviser under this section unless the person files a sustainable investment policy with the Commission that such person follows in carrying out the duties of an investment adviser. (2) Contents (A) In general A sustainable investment policy described under paragraph (1) shall include policies of the person, with respect to— (i) corporate governance practices by entities in which the plan invests, including executive compensation, board diversity, the independence of board chairs, political spending and lobbying disclosure; (ii) characteristics of workforces employed by entities in which the plan invests, including compensation and benefits, health and safety, diversity and demographics, skills and training, retention and turnover, full-time and part-time employment, and the use of independent contractors