HF 3694

as introduced - 89th Legislature (2015 - 2016) Posted on 03/30/2016 12:44pm

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,
2017, 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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