Arkansas Code Title 24. Retirement and Pensions § 24-2-804. Consideration of nonpecuniary factors prohibited

(c)(1) An environmental, social, corporate governance, or other similarly oriented consideration is a pecuniary factor only if it presents an economic risk or opportunity that a qualified investment professional would treat as a material economic consideration under generally accepted investment theories.

(2) The weight given to any factor listed in subdivision (c)(1) of this section should reflect solely a prudent assessment of its impact on financial risk and financial return.

(3) A fiduciary considering an environmental, social, corporate governance, or other similarly oriented factor as a pecuniary factor is also required to examine the level of diversification, degree of liquidity, and the potential financial risk and financial return in comparison with other available alternative investments that would play a similar role in the pension benefit plan portfolio.

(4) Any pecuniary consideration of an environmental, social, or governance factor must include an evaluation of whether a greater return can be achieved through investments that rank poorly on that factor.