HOUSE OF REPRESENTATIVES

H.R. NO.

120

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 1

STATE OF HAWAII

 

 

 

 

 


HOUSE RESOLUTION

 

 

URGING THE EMPLOYEES' RETIREMENT SYSTEM TO WORK IN CONJUNCTION WITH A REPUTABLE FIRM OF INVESTMENT CONSULTANTS TO SUBMIT A REPORT ASSESSING THE IMPACT ON THE EMPLOYEES' RETIREMENT SYSTEM'S PORTFOLIO OF FOSSIL FUEL INVESTMENTS TO THE LEGISLATURE.

 

 

 


     WHEREAS, the State of Hawaii has a strong and necessary commitment to sustainability; and

 

     WHEREAS, the State has adopted the goal of meeting 40 percent of its energy needs through renewable energy sources by 2030; and

 

     WHEREAS, the University of Hawaii System, the Hawaii's largest institution of higher learning and research, has adopted Executive Policy 4.202, which sets a university goal of carbon neutrality by 2050; and

 

     WHEREAS, Hawaii is particularly vulnerable to the effects of global warming; and

 

     WHEREAS, continued rising of sea levels caused by global warming threaten to erode State beaches and dramatically alter shorelines; and

 

     WHEREAS, continued increases in ocean temperatures caused by global warming may cause irreversible harm to ocean ecosystems, including the widespread bleaching of coral and increased stress for native plants and animals; and

 

     WHEREAS, higher average temperatures caused by global warming may also increase the incidence of heat-related illnesses such as dengue fever and cholera; and

 

     WHEREAS, global warming has also affected global weather patterns, leading to periods of drought and flooding worldwide, and to disruptions in tradewind and rainfall patterns in the State; and

 

     WHEREAS, fossil fuel usage is often cited by scientists as a primary driver of global warming; and

 

     WHEREAS, many of the world's leaders have taken steps to curb fossil fuel usage and global warming, such as in December, 2015, when an international agreement was reached at the United Nations Climate Change Conference in Paris to limit global warming to below two degrees centigrade; and

 

     WHEREAS, many countries have adopted and will continue to adopt laws that address climate change, evidenced by the over 800 laws that address climate change worldwide today, nearly double the amount since 2009; and

 

     WHEREAS, many of these laws, regulations, and restrictions regarding fossil fuel usage will undoubtedly have effects on the value of coal, oil, and gas companies; and

 

     WHEREAS, the value of fossil fuel stocks has already decreased by nearly one-third in the past two years; and

 

     WHEREAS, the New York State Retirement Fund lost at least $5.3 billion from their investments in top coal, oil, and gas companies; and

 

WHEREAS, fossil fuel stock prices face further valuation concerns due to restrictions on fossil fuel reserve consumption set by international global warming goals adopted during the 2015 United Nations Climate Change Conference; and

 

WHEREAS, financial experts, including the Executive Director for Supervisory Risk and Regulatory Operations of the Bank of England, Paul Fisher; former United States Treasury Secretary, Hank Paulson; former Securities and Exchange Commissioner Bevis Longstreth; and analysts at Citigroup, AXA Investment Managers, Goldman Sachs, Standard and Poor's, and HSBC have warned of a looming carbon financial bubble; and

 

WHEREAS, the declining value of fossil fuel stocks may pose an ongoing problem for investors given the global push toward renewable energy; and

 

WHEREAS, two of the largest pension funds in the nation, California's CalPERS and CALSTRS, have divested from holdings in coal mining companies in response to legislation adopted by the California State Legislature; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2016, that the Board of Trustees of the Employees' Retirement System, working in conjunction with a reputable firm of investment consultants with experience in managing fossil fuel-free portfolios, is urged to prepare and submit a report to the Legislature prior to the convening of the Regular Session of 2017 assessing the impact on the Employees' Retirement System's portfolio of fossil fuel investments over the past one, three, and five years and quantify the losses and gains incurred by such investments, compared to the portfolio rebalanced with those investments distributed in other sectors; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Chair of the Board of Trustees of the Employees' Retirement System.

 

 

 

Report Title: 

ERS; Fossil Fuels; Sustainability; Renewable Energy; Investment