SECTION 1. Chapter 29 of the General Laws is hereby amended by adding the following section:-

Section 72. (a) As used in this section the following words shall, unless the context  clearly requires otherwise, have the following meanings:-

“Biofuel”, any fuel made from biomass

“Board”, the pension reserves investment management board established pursuant to section 23 of chapter 32.

“Climate risk investments,” any fossil fuel investments or investment in other industries, including, but not limited to biofuel, that may have a negative impact on the global climate, that scientific evidence has established as contributing to climate change, that conflict with or undermine the commonwealth’s climate goals, and that pose a risk to the portfolio performance for beneficiaries of the public fund.

“Committee”, the climate risk investment review committee established pursuant to 14     subsection (c).

“Direct holdings”, all securities of a company held directly by the public fund or in an account or fund in which the public fund owns all shares or interests.

“Fossil fuel investments”, any stocks or other securities of a corporation or company within the fossil fuel industry or any subsidiary, affiliate or parent of any corporation or company among the 200 largest publicly traded fossil fuel companies, as established by carbon in the companies’ proven oil, gas and coal reserves.“Indirect holdings”, all securities of a company held in an account or fund, such as a mutual fund, managed by 1 or more persons not employed by the public fund, in which the public fund owns shares or interests together with other investors not subject to this section or section 23C of chapter 32. 

“Public fund”, the Pension Reserves Investment Trust or the pension reserves investment management board in charge of managing the pooled investment fund consisting of the assets of the state employees’ and teachers’ retirement systems as well as the assets of local retirement systems under the control of the board.

(b) This section applies only to direct and indirect holdings by the public fund.

(c) There shall be within the office of the treasurer, but not subject to its supervision or control, a Climate Risk Investment Review Committee consisting of the following 12 voting members: the state treasurer or a designee, who shall serve as chair; the secretary of administration and finance or a designee; the comptroller or a designee; the executive director of the public employee retirement administration commission; a member of the pension reserves investment management stewardship and sustainability committee; a member of the Massachusetts state retirement board; one individual appointed by the governor; two individuals appointed by the treasurer; a community representative with climate finance experience; individual appointed by the secretary of energy and  environmental affairs who shall be a climate scientist; and the climate chief or a designee. The  house and senate chairs and the ranking minority members of the joint committee on financial services and the house and senate chairs and the ranking minority members of the joint committee on telecommunications, utilities and   energy shall be nonvoting members of the committee. Each individual appointed by the governor, treasurer and secretary of energy and environmental affairs shall serve terms established by the appointing authority, but not longer than 4 years. Each appointed individual may serve a second or subsequent terms, and each appointed individual may continue to serve after the individual’s term expires if desired by the appointing authority.

(d) The chair shall call meetings of the committee every 8 weeks; provided, however, that the chair may call meetings of the committee more frequently if the chair determines that more frequent meetings of the committee are necessary to perform its duties or fewer meetings if the chair so determines. The chair shall call the first meeting of the committee within four weeks following the designation of all members of the committee.

(e) (1) The committee shall: (i) study and review on a continuing basis  any potential financial risk to beneficiaries and taxpayers associated with any climate risk investments in the portfolio. The committee may provide recommendations regarding how to mitigate any such potential risks.

(f) Annually, not later than November 1 of each year, the committee shall file a report with the board, the governor and the clerks of the house of representative and the senate detailing the committee’s findings and any recommendations as to actions regarding climate risk investments, if any.. The committee’s report shall direct the board’s actions. The committee shall have the right to change the date of the report based on the need to expedite implementation of the committee’s recommendations or the need for any extensions if the chair so determines.

(g) The committee shall be subject to sections 18 to 25, inclusive, of chapter 30A and chapter 66. The committee shall provide content and information for a  publicly available website, operated and maintained by PRIM, that will describe its membership, activity, and make available all its reports and meeting material no later than 7 days after the meeting of the committee or the filing of a report.