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. Both bills are expected to be modified in the 2026-27 General Assembly reflecting the following requirements:

Fossil Fuel Companies are defined as those that are among the top 100 publicly-traded oil and gas companies with the largest proven carbon reserves globally and the top 100 publicly-traded coal companies with the largest proven carbon reserves globally.

The bills will require:

  1. The State's public pension funds must immediately cease new investment in publicly-traded fossil fuel companies.

  2. The State must divest its current public holdings in the fossil fuel industry within 5 years of the effective date of the Act.

  3. Boards of Trustees must update their written investment policies to align with this Act.

  4. The Boards of Trustees must report annually on  the status of their fossil fuel holdings and divestments; and further report any residual de minimis holdings as permitted by the Act.  The report must be submitted annually to the General Assembly and posted to the funds’ publicly accessible websites.

    Read more.

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.