Alaska

Title

Key Dates

Nature of
Action

ESG Category

Summary

Exxon Mobil Takes On Climate Extremists

Introduced

5/30/2024

Treasure Position

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Op-ed published in the Wall Street Journal by Alaska's Commissioner of Revenue Adam Crum, which criticizes CalPERS' opposition to Exxon Mobil's effort to seek withdrawal of a shareholder proposal pushing emissions-reduction targets that could undermine Exxon Mobil's business operations. 

■ Commissioner Crum mentions the key role that oil and gas have played in Alaska's economic growth, and he also notes how shareholders had already rejected previous similar climate proposals. Finally, he contrasts CalPERS from his approach in Alaska, where they "apply prudent investment rules and practices as prescribed by state statutes to maximize investment performance" and "don’t use residents’ dollars to advance a fiscally irresponsible activist agenda."  He states that Alaska will "continue to work with responsible resource-development companies including Exxon Mobil to ensure a prosperous future for Alaska for generations to come.”

Title

Key Dates

Nature of
Action

ESG Category

Summary

 ■The bill prohibits financial institutions, a payment network, or an agent of a financial institution or payment network from requiring a firearm code to be used in a way that distinguishes a firearm retailer from a general merchandise retailer or sporting goods retailer. 

■ Financial institutions and payment networks are prohibited from discriminating against firearm retailers. This includes declining lawful payment card transactions, limiting business with customers or merchants based on firearm codes, charging higher fees, or taking actions that impede lawful commerce involving firearms, accessories, or ammunition.

■ Except as otherwise required by law, a financial institution or payment network may not disclose a financial record that was collected in violation of this section.

■The bill allows firearm retailers or customers to petition the attorney general to investigate alleged violations. If a violation is found, the attorney general can issue a notice to stop the violation, and if not complied with, can file an action to enjoin the violator. Violations of injunctions can result in fines up to $10,000 per violation. Attorney Fees and Injunctions: If the attorney general or a petitioner prevails in an action, the court must award full reasonable attorney fees. Preliminary or permanent injunctions issued under the bill will not take effect until 30 days after the order is issued.

 ■ The bill prohibits financial institutions and payment networks from requiring the use of a firearm code that distinguishes firearm retailers from general merchandise or sporting goods retailers. This aims to protect the privacy of firearm transactions.

■ Financial institutions and payment networks are prohibited from discriminating against firearm retailers. This includes declining lawful payment card transactions, limiting business with customers or merchants based on firearm codes, charging higher fees, or taking actions that impede lawful commerce involving firearms, accessories, or ammunition.

■ Except as required by law, financial institutions and payment networks are prohibited from disclosing financial records collected in violation of the bill's provisions. This is intended to further protect the privacy of firearm transactions.

■ The bill allows firearm retailers or customers to petition the attorney general to investigate alleged violations. If a violation is found, the attorney general can issue a notice to stop the violation, and if not complied with, can file an action to enjoin the violator. Violations of injunctions can result in fines up to $10,000 per violation. Attorney Fees and Injunctions: If the attorney general or a petitioner prevails in an action, the court must award full reasonable attorney fees. Preliminary or permanent injunctions issued under the bill will not take effect until 30 days after the order is issued.

HB6: An Act Restricting Fiduciary Actions by a Fiduciary of a State Fund, the Alaska Retirement Management Board, and the Alaska Permanent Fund Corporation Board That Have the Purpose of Furthering Social, Political, or Ideological Interests

Introduced

1/22/2025

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Provides that the fiduciary of a state fund may not take an action involving investment for the purpose of furthering a social, political, or ideological interest. Except as required under applicable federal or state law, an action is considered to have the purpose of furthering a social, political, or ideological interest if evidence indicates a commitment to any of the following:

1) eliminating, reducing, offsetting, or disclosing greenhouse gas emissions;

2) instituting or assessing corporate board or employee composition, compensation, or disclosure criteria based on social, political, or ideological characteristics or practices;

3) divesting from, limiting investment in, or limiting the activities or investments of a company for failing, or not committing, to meet environmental standards or disclosures;

4) providing or limiting access to abortion, sex or gender change, or transgender surgery;  

5) divesting from, limiting investment in, or limiting the activities or investments of a company for engaging in, facilitating, or supporting the manufacture, distribution, sale, or use of firearms.

Title

Key Dates

Nature of
Action

ESG Category

Summary

HB303: An Act Relating to the Duties of the Alaska Retirement Management Board; Relating to the Duties of the Board of Trustees of the Alaska Permanent Fund Corporation

Introduced, but did not pass the 2024 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Requires the board of a defined benefit retirement plan in exercising its duties to (1) act solely in the pecuniary interest of plan members and beneficiaries, (2) vote all shares held directly or indirectly by or on behalf of the plan solely in the pecuniary interest of members and (3) not rely on nonpecuniary factors when (a) evaluating an investment or evaluating or exercising a right to appurtenant to an investment;(b) promote a nonpecuniary benefit or goal; (c) rely on an ESG or other similar consideration as a pecuniary factor unless (a) the consideration presents economic risk or opportunity that a qualified investment professional would consider material; under generally accepted investment theories; (B) the board relies on a prudent assessment of risk and return when weighing the consideration; (C) the board examines the level of diversification, degree of liquidity, and the potential risk and return of the consideration compared with available alternative investments that would play a similar role in the fund portfolio.

■ "nonpecuniary" includes an action taken or factor considered by the board with a purpose to further ESG or ideological goals.

■ "pecuniary" means materially affecting the financial risk or financial return of an investment based on appropriate investment horizons consistent with plan investment objectives and funding policy.

HB174: An Act Restricting Fiduciary Actions by a Fiduciary of a State fund, the Alaska Retirement Management Board, and the Alaska Permanent Fund Corporation Board that Have the Purpose of Furthering Social, Political, or Ideological Interests

Introduced, but did not pass in the 2023 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Prohibits the fiduciary of a state fund, the Alaska Retirement Management Board, or the Alaska Permanent Fund Board from taking an action involving investment for the purpose of furthering a social, political, or ideological interest.

■ An action is considered to have the purpose of furthering a social, political, or ideological interest if evidence indicates a commitment to (1) eliminating, reducing, offsetting, or disclosing greenhouse gas emissions; (2) instituting or assessing corporate board or employee composition, compensation, or disclosure criteria based on social, political, or ideological characteristics or practices; (3) divesting from, limiting investment in, or limiting the activities or investments of a company for failing or not committing to meet environmental standards or disclosures; (4) providing or limiting access to abortion, sex or gender change, or transgender surgery; or (5) divesting from, limiting investment in, or limiting the activities or investments of a company for engaging in, facilitating, or supporting the manufacture, distribution, sale, or use of firearms.

HB394: Investment of State Money and Divestment of Certain Investments by Public Agencies

Introduced, but did not pass in the 2023 legislative session

Legislation

Target Entities that Boycott Certain Industries

■ Restricts public agencies from investing state money in organizations that (i) promote or engage in a boycott or divestment campaign targeting Alaska, or (ii) target the autonomy of Taiwan or the existence of a foreign country.

■ The Alaska Department of Revenue shall develop and maintain a publicly available list of organizations that it determines are restricted organizations and shall provide 90 days’ written notice to an organization before including it on the list.