Bill > S330

Introduced Session

This bill prohibits the Director of the Division of Investment from investing any assets of the State retirement funds in any of the top 200 companies that hold the largest carbon content fossil fuel reserves. Under the bill, divestment from coal companies must be completed within two years, and from all other fossil fuel companies by January 1, 2022. The director may cease divestment or reinvest in previously divested companies if the director demonstrates that as a direct result of the divestment, the funds have or will become equal to or less than 99.5 percent, or 100 percent less 50 basis points, of the hypothetical value of all assets under the director's management, assuming no divestment from any company had occurred. The State Investment Council and the director are to identify all companies subject to divestment, and the director is to report annually on the progress of divestment. The State of New Jersey recognizes climate change as a real and substantial threat, and is committed to efforts aimed at curbing global warming. To that end, the State will stand, with a host of other institutions across the country, against profiting from companies that are accelerating climate change by removing those companies from its pension and annuity funds portfolio. This divestment also considers the funds' fiduciary obligations, in that the Paris climate agreement targets for reducing greenhouse gas emissions could produce scores of "stranded assets," or fuel reserves that cannot be burned in order to meet those targets, rendering the profitability of these companies uncertain. It is at this critical juncture in the race against time to prevent climate change that this State reduces its financial interest in those companies inimical to that goal.

AI Summary

Committee Categories

Linda Greenstein (D)*,  Bob Smith (D)*,  Dawn Addiego (D),  Christopher Bateman (R),  Richard Codey (D),  Joe Cryan (D),  Patrick Diegnan (D),  Nia Gill (D),  Vin Gopal (D),  Ronald Rice (D),  Teresa Ruiz (D),  Brian Stack (D),  Shirley Turner (D),  Joe Vitale (D),  Loretta Weinberg (D), 

Senate State Government, Wagering, Tourism & Historic Preservation Hearing (10:00 7/22/2020 Registration Form) (on 07/22/2020)

Official Document