Maine | Ropes & Gray LLP

State Regulations

Legislation/Guidance in Effect

Title

Key Dates

Nature of
Action

ESG Category

Summary

Maine's public retirement system says 'fiduciary duties' limit divestment from fossil fuels

Adopted and in effect 3/12/2024

Enforcement/Divestment

Target Entities That Boycott Certain Industries

■ In 2021, Maine enacted H.P. 65 - L.D. 99, An Act to Require the State to Divest Itself of Assets Invested in the Fossil Fuel Industry, which called for the Maine Public Employees Retirement System ("MainePERS") to completely divest from fossil fuel companies by January 2026.

■ MainePERS CEO Rebecca Wyke emphasized at a meeting with lawmakers that while progress toward divesting from fossil companies has been made, the complete elimination of such investments would conflict with MainePERS' fiduciary duties to its participants and beneficiaries. Other MainePERS officials said a fossil fuel free portfolio would be more expensive, and the best long-term strategy is to "broadly diversify the portfolio, without excluding certain sectors".

HP65 / LD 99: Limitation on Investment in Fossil Fuel Companies; Divestment

Effective date
6/16/2021

Adopted
6/16/2021

Introduced
1/11/2021

Legislation

Promote Divestment from Certain Industries

■ Applies to the Maine Public Employees' Retirement System.

■ Prohibits investment in the 200 largest publicly traded fossil fuel companies as determined by the amount of carbon in their reserves. Requires divestment from restricted companies by January 1, 2026.

Past/Inactive Legislation

Title	Key Dates	Nature of Action	ESG Category	Summary
LD742: An Act to Divest State Pensions from Companies Boycotting Maine Lobster	Introduced, but did not pass in 2023 legislative session	Legislation	Target Entities That Boycott Certain Industries	■ Applies to the Maine Public Employees Retirement System. ■ Requires the Board of Trustees of the Maine Public Employees Retirement System to divest any stocks, securities or other obligations of any corporation or company that trades in lobsters and that has publicly stated it will not trade in lobsters caught in Maine waters, whether by not purchasing, not selling or otherwise not trading in such Maine lobsters, or caught by any person licensed by the Department of Marine Resources to fish for, take or catch lobsters.
LD1562: An Act to Protect the Retirement of State Employees and Teachers by Establishing Standards for Fiduciary Responsibility	Introduced, but did not pass in 2023 legislative session	Legislation	Restrict Use of ESG Factors; Focus on Pecuniary Characteristics	■ Establishes certain standards of care for fiduciaries of the Maine Public Employees' Retirement System and generally prohibits decision-making with regard to investments in the retirement system based on certain nonpecuniary factors such as environmental, social, corporate governance, ideological, or political factors.