HB 2405 Summary

• Creates a new chapter in Hawaii Revised Statutes establishing socially responsible investing standards for state endowment funds, retirement system funds, and other investment funds maintained by state agencies.

• Requires divestiture from fossil fuels, private prisons, factory farms, pesticides, forest clearing, arms manufacturers, tobacco, gambling, animal testing companies, and companies with labor rights or human rights abuses.

• Mandates a concerted effort to invest in public benefit corporations, social enterprises, and locally owned and locally operated businesses.

• Requires appointment of credible environmental, social, and governance ratings agencies to monitor fund sustainability and training for fund managers to earn chartered socially responsible investment counselor credentials.

• Specifies that socially responsible investing must not compromise fund stability and operations, preserving fiduciary duty obligations.