HI HR26

Urges the Board of Trustees of the Employees' Retirement System to work with a reputable investment consulting firm experienced in managing fossil fuel-free portfolios to assess the impact of fossil fuel investments on the system's portfolio.

Requires the Board to prepare and submit a report to the Legislature prior to the 2018 Regular Session assessing the impact of fossil fuel investments over the past one, three, and five years.

Directs the report to quantify losses and gains from fossil fuel investments compared to a rebalanced portfolio with those investments distributed in other sectors.

Cites Hawaii's commitment to 100 percent renewable energy by 2045 and notes that fossil fuel stock values have decreased nearly one-third in the past two years due to global climate change policies.

References warnings from financial experts about a looming carbon financial bubble and notes that major pension funds like CalPERS and CALSTRS have already divested from coal mining companies.