STAND. COM. REP. NO.1659

Honolulu, Hawaii

, 2001

RE: S.R. No. 10

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.R. No. 10, S.D. 1, entitled:

"SENATE RESOLUTION REQUESTING SOCIALLY RESPONSIBLE INVESTMENT,"

begs leave to report as follows:

The purpose of this measure is to encourage the Employees' Retirement System to apply the principles of socially responsible investment in its investment practices and decisions.

In addition, this measure requests the Legislative Reference Bureau to conduct research on socially responsible investment—also known as double-bottom line investment, mission-related investment, and natural investing—by examining the laws and practices in other states, and current reports and studies in the field.

Your Committee finds that socially-responsible investment has its roots in the colonial era when abolitionist Quakers refused to invest in any business associated with slavery, and blossomed in the 1970s, influenced by strong social movements focusing on the environment, fair employment practices, the military-industrial complex, and the rights of minorities and women. Distinct but related aspects involved in a socially responsible investment strategy are: (1) avoiding companies whose record conflicts with the investor’s values; (2) seeking out companies whose record is consistent with the investor’s values; (3) targeting investments directly into communities; and (4) taking an active role as a shareholder in influencing corporate policies.

Your Committee received testimony in support of this measure from the Responsible Markets LLC.

Your Committee has amended this measure by:

(1) Sending a copy of this measure to the Office of Hawaiian Affairs;

(2) Recognizing the Summit on Double-Bottom Line Investing in Hawai'i, `Aha Ho`opuka Pono, which was held in Honolulu from February 26-28, 2001;

(3) Deleting the reference to the "Bottom Line 2001" conference being held in San Francisco from April 18-20, 2001; and

(4) Making technical nonsubstantive changes for purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 10, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 10, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair