Connecticut | Ropes & Gray LLP

State Regulations

Legislation/Guidance in Effect

Title	Key Dates	Nature of Action	ESG Category	Summary
State Treasurer’s Responsible Gun Policy	Adopted and in effect 2/19/2020	Treasurer Position	Promote Divestment from Certain Industries	■ Applies to the Connecticut Retirement Plans and Trust Funds. ■ Prohibits investment in civilian firearms manufacturers. Requests that banks and financial institutions that wish to work with the state treasurer's office disclose their policies on guns. Requires the treasurer's office to consider a financial institution's firearms policy when contracting for financial services.

Pending Legislation

Title

Key Dates

Nature of
Action

ESG Category

Summary

SB1092: An Act Requiring Neutrality and Transparency in Decisions Involving the Investment of Public Funds

Introduced
1/22/2025

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Prohibits financial institutions from discriminating against a firearms retailer by taking any action against a customer or merchant that is intended to suppress lawful commerce involving firearms and related products based solely or in part on the customer's or merchant's business involving firearms and related products.

■ Allows the Attorney General to investigate alleged violations, provide written notice of violations, request an injunction against the use of a firearms code for merchants located in Arkansas, and recover a civil penalty up to $10,000 if the use of a firearms code continues after 30 days.

Prohibit Discrimination on Basis of Social Credit or ESG Scores

Past/Inactive Legislation

Title	Key Dates	Nature of Action	ESG Category	Summary
HB6397: An Act Concerning Zero-carbon Emissions	Introduced, but did not pass in the 2023 legislative session	Legislation	Promote Divestment from Certain Industries	■ Previously, proposed HB6397 required the state treasurer to divest by October 1, 2023, all public funds from the stocks and securities of companies that derived more than 10% of their revenue from the sale of fossil fuels. SUBSEQUENT DEVELOPMENTS According to the Committee Report, State Treasurer Erick Russell submitted testimony in opposition to the bill. "Climate and its impact on the planet are most consequential. . . I am committed to utilizing every tool to reach our shared goals but rushing this decision runs counter to my role as sole fiduciary of the State's pension and trust funds." Hence, the language concerning the State Treasurer was removed from the amended HB6397.
HB6348: An Act Concerning The Divestment Of State Funds From Fossil Fuel Corporations	Introduced, but did not pass in the 2023 legislative session	Legislation	Promote Divestment from Certain Industries	■ Authorizes the state treasurer to divest and decide not to further invest state funds in any corporation or other entity that extracts, transports, trades, or otherwise contributes to the production of coal, oil, and gas.
SB42: An Act Concerning The Climate Sustainability Scores Of Companies Invested In By The State Treasurer	Introduced, but did not pass in the 2023 legislative session	Legislation	Promote ESG Factors in Investment and/or Proxy Voting Decisions	■ Requires the state treasurer to issue an annual report scoring companies and detailing any failure of companies in which state pension funds are invested to comply with Connecticut’s climate sustainability goals.