HOUSE . . . . . . . . No. 4819
The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, July 8, 2024.
The committee on Public Service, to whom was referred the petition
(accompanied by bill, House, No. 2504) of Mindy Domb and Lindsay N.
Sabadosa relative to public pension fund divestment from climate risk
investments and negative economic impacts from carbon producing
industries, reports recommending that the accompanying bill (House, No.
4819) ought to pass.
For the committee,
KENNETH I. GORDON. 1 of 4
FILED ON: 6/28/2024
HOUSE . . . . . . . . . . . . . . . No. 4819
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act to mandate the review of climate risk in order to protect public pension beneficiaries and
taxpayers.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 29 of the General Laws is hereby amended by adding the following
2section:-
3 Section 72. (a) As used in this section the following words shall, unless the context
4clearly requires otherwise, have the following meanings:-
5 “Biofuel”, any fuel made from biomass
6 “Board”, the pension reserves investment management board established pursuant to
7section 23 of chapter 32.
8 “Climate risk investments,” any fossil fuel investments or investment in other industries,
9including, but not limited to biofuel, that may have a negative impact on the global climate, that
10scientific evidence has established as contributing to climate change, that conflict with or
11undermine the commonwealth’s climate goals, and that pose a risk to the portfolio performance
12for beneficiaries of the public fund. 2 of 4
13 “Committee”, the climate risk investment review committee established pursuant to 14
14subsection (c).
15 “Direct holdings”, all securities of a company held directly by the public fund or in an
16account or fund in which the public fund owns all shares or interests.
17 “Fossil fuel investments”, any stocks or other securities of a corporation or company
18within the fossil fuel industry or any subsidiary, affiliate or parent of any corporation or company
19among the 200 largest publicly traded fossil fuel companies, as established by carbon in the
20companies’ proven oil, gas and coal reserves.“Indirect holdings”, all securities of a company
21held in an account or fund, such as a mutual fund, managed by 1 or more persons not employed
22by the public fund, in which the public fund owns shares or interests together with other
23investors not subject to this section or section 23C of chapter 32.
24 “Public fund”, the Pension Reserves Investment Trust or the pension reserves investment
25management board in charge of managing the pooled investment fund consisting of the assets of
26the state employees’ and teachers’ retirement systems as well as the assets of local retirement
27systems under the control of the board.
28 (b) This section applies only to direct and indirect holdings by the public fund.
29 (c) There shall be within the office of the treasurer, but not subject to its supervision or
30control, a Climate Risk Investment Review Committee consisting of the following 12 voting
31members: the state treasurer or a designee, who shall serve as chair; the secretary of
32administration and finance or a designee; the comptroller or a designee; the executive director of
33the public employee retirement administration commission; a member of the pension reserves
34investment management stewardship and sustainability committee; a member of the 3 of 4
35Massachusetts state retirement board; one individual appointed by the governor; two individuals
36appointed by the treasurer; a community representative with climate finance experience;
37individual appointed by the secretary of energy and environmental affairs who shall be a climate
38scientist; and the climate chief or a designee. The house and senate chairs and the ranking
39minority members of the joint committee on financial services and the house and senate chairs
40and the ranking minority members of the joint committee on telecommunications, utilities and
41energy shall be nonvoting members of the committee. Each individual appointed by the
42governor, treasurer and secretary of energy and environmental affairs shall serve terms
43established by the appointing authority, but not longer than 4 years. Each appointed individual
44may serve a second or subsequent terms, and each appointed individual may continue to serve
45after the individual’s term expires if desired by the appointing authority.
46 (d) The chair shall call meetings of the committee every 8 weeks; provided, however, that
47the chair may call meetings of the committee more frequently if the chair determines that more
48frequent meetings of the committee are necessary to perform its duties or fewer meetings if the
49chair so determines. The chair shall call the first meeting of the committee within four weeks
50following the designation of all members of the committee.
51 (e) (1) The committee shall: (i) study and review on a continuing basis any potential
52financial risk to beneficiaries and taxpayers associated with any climate risk investments in the
53portfolio. The committee may provide recommendations regarding how to mitigate any such
54potential risks.
55 (f) Annually, not later than November 1 of each year, the committee shall file a report
56with the board, the governor and the clerks of the house of representative and the senate detailing 4 of 4
57the committee’s findings and any recommendations as to actions regarding climate risk
58investments, if any.. The committee’s report shall direct the board’s actions. The committee shall
59have the right to change the date of the report based on the need to expedite implementation of
60the committee’s recommendations or the need for any extensions if the chair so determines.
61 (g) The committee shall be subject to sections 18 to 25, inclusive, of chapter 30A and
62chapter 66. The committee shall provide content and information for a publicly available
63website, operated and maintained by PRIM, that will describe its membership, activity, and make
64available all its reports and meeting material no later than 7 days after the meeting of the
65committee or the filing of a report.