Relating to Socially Responsible Investing
I am working at the Hawai‘i State House of Representatives for the 2020 legislative session which runs from January until May. My boss Representative Tina Wildberger of District 11 is a true progressive and environmentalist, and in my time working for her I haven’t had to make moral compromises to continue my work. Beyond the fact that I agree with her policy, she is simply a good boss. She treats us staff well and makes coming to work an enjoyable experience every day.
I’ve had the great pleasure of helping craft the Hawai‘i Green New Deal legislative package that embraces Aloha ‘Aina and recognizes our collective kuleana to protect nature. It is a holistic effort that touches food, energy, transportation, waste management, ecosystem restoration, health, housing, education, and green job creation. After our office cranked out this suite of bills and a few others, we had space to introduce one more. She tasked me with creating a bill from ideation to its final written form. Coming into the 2020 session, I had no clue how to write a bill beyond what I knew from the old School House Rock music video. I truly got the crash course. If you know me, you know I am passionate about sustainable enterprise. Naturally, the bill I ended up writing related to this upcoming ESG (Environment, Society, and Corporate Governance) movement. And thus, HB2405 was born. Here is the language:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that socially responsible investing is an innovative and effective method of empowering businesses to bring about positive social and environmental change. Socially responsible investing is the practice of investing money in companies and funds that have positive social impacts and divesting from companies and industries that are corrupt, environmentally destructive, or socially damaging. The legislature also finds that socially responsible investing has been growing in popularity, not only as a response to growing social and environmental pressures but also for its potential for higher financial returns than traditional investment strategies.
The purpose of this Act is to integrate socially responsible investing into the investment decision-making of endowment, trust, or investment funds created by statute or maintained by state agencies or offices, under certain conditions.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
“CHAPTER
SOCIALLY RESPONSIBLE INVESTING
§ -1 Definitions. As used in this chapter:
“Socially responsible investing” means any investment strategy that seeks to consider the financial return as well as the social and environmental good to bring about positive social change.
§ -2 Socially responsible investing. (a) Notwithstanding any law to the contrary, the appropriate entity or entities with management and oversight or fiduciary responsibility over the endowment funds of the University of Hawaii, funds of the employees’ retirement system, Hawaii tobacco prevention and control trust fund, Hawaii children’s trust fund, State of Hawaii endowment fund, or any other endowment, trust, or investment funds established by statute or maintained by state agencies or offices shall invest moneys under their respective jurisdictions using socially responsible investing, as follows:
(1) Seek divestiture from fossil fuels, private prisons, factory farms, pesticides, forest clearing, arms and weapons manufacturers and sellers, tobacco, gambling, animal testing companies, companies with histories of labor rights or human rights abuses, companies that deal with oppressive foreign regimes or dictatorships, and companies that exploit cheap or slave-like overseas labor that would violate United States labor laws;
(2) Make a concerted effort to invest in public benefit corporations, social enterprises, and other companies that uphold standards of social responsibility;
(3) Make a concerted effort to invest in locally owned and locally operated businesses;
(4) Provide training for state fund managers to earn chartered socially responsible investment counselor credentials;
(5) Appoint a credible environmental, social, and governance ratings agency to monitor the social and environmental sustainability of state funds; and
(6) Uphold the fiduciary duty bound by investment goals;
provided that such investment of moneys will not compromise the stability of the respective fund and operations of the entity.”
SECTION 3. This Act shall take effect upon its approval.
During the hearing, it was a pretty cool experience giving testimony on the bill I authored. SB3085, the Senate companion bill (which has the exact same language) has been heard by the Senate Committee on Government Operations and PASSED with amendments. Now, it is waiting to be heard by the Senate Committee on Judiciary and Senate Committee on Ways and Means. I write this blog post to ask for your support. So, if you are in support of socially responsible investing and its potential to infuse our economy with compassion for society and our environment, please help get this bill a hearing!
Please contact the Chairs of these final two Committees and ask them to give SB3085 Relating to Socially Responsible Investing a hearing:
Chair of the Judiciary Committee, Senator Karl Rhoads
808–586–6130 | senrhoads@capitol.hawaii.gov
Chair of the Ways and Means Committee, Senator Donovan M. Dela Cruz
808–586–6090 | sendelacruz@capitol.hawaii.gov
In the event that SB3085 gets a hearing, you will be able to add your voice to the legislative process. Here’s how:
How to receive Hearing Notices by email: https://lrb.hawaii.gov/par/wp-content/uploads/sites/2/2020/01/How-To-Hrg-Notices.pdf (we recommend signing up for hearing notices for the Energy & Environmental Protection Committee and any others that you are personally interested in)
How to Submit Testimony: https://lrb.hawaii.gov/par/wp-content/uploads/sites/2/2019/12/How-to-submit-testimony.pdf
Testimony tips: https://lrb.hawaii.gov/par/engagement-101/tips-on-testimony
Sample Testimony: https://lrb.hawaii.gov/par/wp-content/uploads/sites/2/2019/12/Sample-testimony.pdf
Thank you all for helping usher in a new era of the sustainable enterprise movement!
Sincerely,
Sultan Zelei White
