|Posted:||May 20, 2021 05:52 PM|
|From:||Senator Katie J. Muth|
|To:||All Senate members|
|Subject:||Achieving Fossil Fuel Free Investments for our State Managed Public Funds|
Fossil fuel investments are a risk for investors, the planet, and public health. Further, the fossil fuel industry faces huge litigation risks, including class action suits that seek to quantify investor losses. These lawsuits are the direct result of company and industry-wide mismanagement of climate change and other social and environmental issues. This legislation will ensure all state managed public funds work toward divestment in a measurable, trackable way to ensure transparency and accountability, and implement a fossil fuel free investment plan rooted in social and fiscal responsibility. Ultimately, this bill will create the requirements to achieve total divestment.
We will achieve this goal by pursuing the following steps:
The move to sell holdings in fossil fuel companies mirrors the divestment from tobacco companies that began two decades ago. In one of the biggest moves in this country, New York City Mayor Bill de Blasio announced in 2018 a goal of divesting his city’s pension funds of fossil-fuel investments by 2022. New York City’s top pension funds are executing on their intentions to cut $4 billion in fossil-fuel investments.
There is precedent in Pennsylvania for mandated divestment of certain holdings. Act 44 of 2010 required divestiture by the State Treasurer, the State Employees' Retirement System and the Public School Employees' Retirement System of investments in companies doing business in Iran and Sudan.
Please join me in meeting our collective moral and fiscal obligations to future generations to minimize the impact of climate change and ensuring financial security by cosponsoring this important legislation..