MN HF3694

State Board of Investment must prepare a report assessing the feasibility of divesting from companies involved in exploration, production, development, transportation, or sale of fossil fuels, with the goal of slowing climate change.

Report must include fiduciary duties and prudent person standards governing retirement fund investments, definitions of fossil fuel and renewable energy investments, and current fossil fuel exposure in retirement funds.

Report must assess concerns and costs of divestment generally and specifically for coal mining companies, identify approaches available to public institutional investors addressing climate change, and examine alternatives to divestment including renewable energy investment and fossil fuel company governance engagement.

Report must summarize how other public pension plans address climate change, describe current climate change consideration in retirement fund investments, develop metrics to assess divestment impact, and identify improvements to proxy guidelines for environmental policy engagement.

State Board of Investment must deliver report to Legislative Commission on Pensions and Retirement by February 1, 2017.