SB 566: Maryland Requires Pension Fiduciary to Consider Climate Risks

April 9, 2022

Summary

SB 566 was enacted in April 2022 and requires the fiduciary of the Maryland State Retirement and Pension System to consider climate risks when investing. The fiduciary should consider "net-zero aligned investments and climate solutions to ensure a path to a long-term sustainable portfolio." It also requires the Board of Trustees to annually report on the climate risk levels across its portfolio and allows the Chief Investment Officer to make investment decisions based on the information in the report. The report must recommend best practices for the Maryland investment policy manual based on recent studies or actions taken by financial institutions or other state pension funds. The report also must examine potential risks and opportunities for different portfolio scenarios. It should identify investment opportunities in renewable energy an technology aimed at reducing carbon.

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