S.B. 2555 Summary

• Requires the Employees' Retirement System of Hawaii to divest all direct holdings in coal, oil, and gas companies according to a phased schedule reaching 100% divestment by July 1 of an unspecified year.

• Defines fossil fuel companies using Global Industry Classification Standard codes in three sectors: coal and consumable fuels, integrated oil and gas, and oil and gas exploration and production.

• Prohibits the public fund from acquiring new assets or securities of fossil fuel companies and requires it to submit letters to actively managed investment fund managers requesting alternatives free of fossil fuel holdings within five years.

• Mandates the public fund identify all fossil fuel holdings in its portfolio by January 1 of an unspecified year and maintain a quarterly-updated fossil fuel companies list.

• Requires annual reports to the legislature detailing divested investments, prohibited holdings, and divestment progress, with the Act taking effect January 1, 2045.