HF 2075

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2019 02:03pm

A bill for an act
relating to the State Board of Investment; mandating a report on fossil fuel
divestment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin STATE BOARD OF INVESTMENT; REPORT ON FOSSIL FUEL
DIVESTMENT.
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new text begin (a) The State Board of Investment shall prepare a report with respect to the State Board
of Investment's management of the assets of the public pension and retirement funds on the
feasibility of divestment of companies that are involved in the exploration, production,
development, transportation or sale of fossil fuels, with the ultimate goal of slowing the
pace of climate change and its adverse consequences. The report shall including the
following:
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new text begin (1) a description of the fiduciary duties, prudent person standard, and other requirements
that govern the State Board of Investment's investment of the retirement funds;
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new text begin (2) definitions of fossil fuel investments and renewable energy investments;
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new text begin (3) an assessment of the exposure to fossil fuel investments in the retirement funds and
its asset class target;
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new text begin (4) an assessment of the concerns and potential costs with divestment of fossil fuel
companies, generally, and specifically, divestment of coal mining and producing companies;
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new text begin (5) identification of the approaches available to public institutional investors that address
climate change initiatives;
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new text begin (6) identification and assessment of alternatives to divestment, including investment in
renewable energy companies and engagement in the governance of fossil fuel companies;
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new text begin (7) a summary of research on the processes, procedures, and policies utilized by other
public pension plans to address climate change issues;
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new text begin (8) a description of how climate change is currently addressed in the investments of the
retirement funds;
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new text begin (9) development of metrics that could be implemented to assess the impact of divestment
and describe measures that would address potential adverse consequences to the retirement
funds of divestment;
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new text begin (10) identification of improvements that could be incorporated into the State Board of
Investment's proxy guidelines to address environmental policy that encourage further
engagement in climate change initiatives; and
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new text begin (11) identification of resources available to the State Board of Investment to continue
acquiring knowledge on climate change risk and related investment alternatives.
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new text begin (b) The State Board of Investment shall deliver its report on or before February 1, 2020,
to the chair, the vice-chair, and the executive director of the Legislative Commission on
Pensions and Retirement.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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