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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | January 11, 2023 06:13 PM |
|---|---|
| From: | Senator Katie J. Muth |
| To: | All Senate members |
| Subject: | Requiring Climate-Related Disclosures for All Non-Public Investments |
| In the near future, I will be introducing legislation that would require a climate-related risk assessment for all non-public investments made by the Commonwealth’s public pension systems. In March 2022, the Securities and Exchange Commission (SEC) proposed a rule change that would require its registrants to include certain climate-related disclosures in their registration statements and periodic reports, including their greenhouse gas emissions. These disclosures also include information about climate-related risks that are likely to have a material impact on their business, results of operations, or financial conditions, such as drought, wildfire, and market shifts. A 2019 survey by CDP found that 215 of the largest global companies faced nearly $1 trillion in risk from climate impacts. Across the country, many public pension funds have taken steps to divest from fossil fuel industries but are often limited in their ability to determine the climate risks associated with non-public investments, such as hedge funds and private equity firms, due to a lack of transparency and disclosure. My legislation would require the state’s public pension systems to have a climate-related risk assessment performed for all non-public investments. The SEC has clearly recognized the risk climate change poses to investors and our financial system alike, and a comprehensive assessment of this risk when making investment decisions would better protect our public pension funds from the current and forthcoming effects of the climate crisis. Cosponsor this legislation to protect the planet and the future of Pennsylvania’s retired public employees. |