Bill > H4126

This bill establishes a comprehensive framework for aligning Massachusetts public pension funds with the state's net zero emissions goals by 2050. The legislation creates a new Economic and Workforce Transition Fund to support communities and workers impacted by fossil fuel asset retirement and to finance clean energy workforce development, funded in part by a 1% contribution from pension investment returns. The bill requires pension fund fiduciaries to integrate climate risk and long-term sustainability into investment decisions, prioritizing investments that reduce exposure to carbon-intensive assets and promote climate solutions. Fiduciaries must prepare annual innovation reports detailing their efforts to align investments with net zero goals, including specific strategies like divesting from high-emission companies and reallocating capital toward renewable energy and green technology. The Public Employee Retirement Administration Commission will monitor compliance, review annual reports, and conduct independent audits, with the Attorney General empowered to pursue legal remedies for persistent noncompliance. Pension fund beneficiaries will have the right to file complaints and access public compliance reports. The bill mandates interim emissions reduction targets for 2030, 2040, and 2050, and requires fiduciaries to implement these new requirements within 12 months of the bill's enactment, with the commission issuing detailed guidance within 6 months.

Labor and Employment

https://malegislature.gov/Bills/194/H4126