Pennsylvania | Ropes & Gray LLP

State Regulations

2024 Upcoming Elections

Pending Legislation

Title

Key Dates

Nature of
Action

ESG Category

Summary

HB334: Requiring Fair Access to Financial Services

Introduced in 2023, carried over to 2024

Legislation

Prohibit Discrimination on Basis of Social Credit or ESG Score

■ Requires financial institutions to disclose to individuals seeking financial services if they were denied services based on standards or guidelines based on nonfinancial, nontraditional and subjective measures, including environmental, social and governance criteria.

■ Requires the disclosure of these standards or guidelines used to support the denial to the consumer.

Past/Inactive Legislation

Title	Key Dates	Nature of Action	ESG Category	Summary
HB2799: Prohibiting financial institutions from using social credit or environmental, social or governance scores; and imposing penalties	Introduced, but did not pass in the 2022 legislative session	Legislation	Target Entities That Boycott Certain Industries	■ Prohibits financial institutions and businesses doing business in Pennsylvania (directly or indirectly) from discriminating against, advocating for, or causing adverse treatment of citizens or businesses based on “subjective or arbitrary standards,” including use of “a social credit score or an environmental, social, or governance score or other similar values” when conducting transactions. ■ Does not apply to investments, products, and services that include “subjective standards” if fully disclosed and explained to potential customers or investors before entering into a contract. ■ Imposes a fine of $50,000 for a first offense and $250,000 for subsequent offenses, and criminal prosecution may be pursued for five or more offenses.
		Legislation	Prohibit Discrimination on Basis of Social Credit or ESG Scores
SB748: Amendment to Protecting Pennsylvania’s Investments Act	Introduced, but did not pass in the 2021 legislative session	Legislation	Promote Divestment from Certain Industries	■ Applies to the Pennsylvania State Employees' Retirement System and the Public School Employees' Retirement System. ■ Prohibits investment in assault weapons manufacturers. Requires divestment within 26 months from restricted companies that do not cease their weapons manufacturing activities within 180 days of receiving notice of the state entity's intention to divest. ■ Does not apply to indirect holdings or holdings in alternative investments.