HI SB801

Requires each public investment fund in Hawaii to develop, publish, and implement socially responsible investment policies that consider environmental, social, and governance (ESG) factors in all investment decision-making, analysis, and portfolio management.

Mandates consideration of five categories of sustainability factors: corporate governance and leadership; environmental impacts including emissions and waste management; social capital impacts on communities and stakeholders; human capital factors including labor practices and workforce diversity; and innovation factors including climate change impacts.

Requires public investment funds to submit annual reports to the legislature starting in 2022 disclosing gross and net rates of return, fees paid to fund managers and related parties, carried interest distributions, and pro rata shares of expenses and fees within alternative investment vehicles.

Requires private capital vehicles receiving state investments to disclose in-state investments, jobs created or lost, tax revenues generated, tax benefits or subsidies received, state or municipal subsidies, lobbying fees, and environmental and social impact assessments.

Takes effect July 1, 2021, and applies to public funds including University of Hawaii endowments, employees' retirement system funds, and other state-established trust and investment funds, but excludes financial institution time deposits and processing services.