David Schumacher — David Schumacher is called up for the work session presentation and then introduces himself on the record as being with the State Investment Board, setting up the presentation.
David Schumacher — Hands off from the financial performance portion to James Aper.
James Aberg — Asked to come up for the work session presentation.
James Aber — Identified as being with David Schumacher for the presentation.
June Robinson — Named as the current Senate legislator on the board.
June Robinson — The meeting opens with the staffer addressing Senator Robinson and the committee, followed shortly by a witness greeting Chair Robinson at the start of testimony. Together, these are brief opening acknowledgments directed to Robinson before the substantive discussion begins.
Mia Gregerson — Named as the current House legislator on the board.
John Braun — Senator John Braun is identified as having a question for the presenter, and that question concerns whether deferred compensation for state employees is invested by the board and whether it is handled similarly to pension funds.
James Aper — James Aper, Director of Institutional Relations at WSIB, introduced his role overseeing sustainability and asset stewardship, then explained that WSIB adopted sustainability frameworks in 2022 to manage climate and DEI risks across the portfolio. He described ESG integration and climate-risk reporting as being rolled out across public equity, corporate fixed income, and eventually private markets. Aper then addressed divestment proposals, arguing that investment restraints can reduce returns and increase costs, while active share ownership and engagement are the best ways to influence companies. He clarified that WSIB’s public equity portfolio is largely passive and broadly diversified, which supports diversification and low costs, and said a more customized stock-selection approach would be significantly more expensive, potentially costing tens of millions of dollars annually. He also noted that the board sets policy, that WSIB would follow any legislative direction, and that the agency’s long-standing non-political investment approach has produced strong results over the past 30 years.
Steve Conway — Asked who makes investment decisions for the State Investment Board and raised questions about bills before the Select Committee on Pension Policy.
Steve Conway — Senator Conway asks whether the same investment strategy or rule being discussed also applies to defined contribution plans and Taft-Hartley trusts, and the discussion continues into related proxy-voting matters, including international proxy votes handled by an external party.
Steve Conway — Senator Conway asks follow-up questions about resentencing, specifically how much time courts will need to handle it and where the associated court costs are included in the estimate. He continues pressing on whether the cost of resentencing work for the courts has been accounted for, then begins to close his questions before allowing a brief follow-up clarification.
Steve Conway — Senator Steve Conway asked whether resentencing cases would take a lot of time in the courts, and was referenced as the senator raising concerns about the time burden on the courts.
Yasmin Trudeau — Thanked the presenter and said understanding SIB decision-making is helpful and positive.
Yasmin Trudeau — Asked how ethical investment guidelines could be reconciled with private equity transparency concerns and whether funds are being tracked.
Yasmin Trudeau — Was told the board evaluates investments through an investment lens, supports shareholder proposals on transition planning and emissions reporting, and that defined contribution participants have more control than defined benefit participants.
Yasmin Trudeau — Referenced again in the discussion of funds and direct contribution options.
Yasmin Trudeau — The speaker appears to address or respond to Senator Benke at the end of the section; the name may be a transcription error and is questionable.
Yasmin Trudeau — Continues asking how ethical investment guidelines would work with private equity transparency and whether the board tracks funds that already incorporate such factors.
Yasmin Trudeau — The witness returns to Senator Trudeau’s question and continues the response.
Yasmin Trudeau — Asks about digital currency, Bitcoin, ETFs, and whether Washington is considering similar investments.
Yasmin Trudeau — Likely a transcription error referring to the senator asking about digital currency; the name is uncertain.
Yasmin Trudeau — Asks about digital currency, Bitcoin, ETFs, and whether Washington is considering similar investments.
Yasmin Trudeau — The chair thanks the presenter and transitions to the public hearing.
Yasmin Trudeau — Asked a question about the cost of responsible investing and the need for custom investment vehicles.
Yasmin Trudeau — Thanked by the witness for introducing the bill.
SB5439 — The committee opens the public hearing on Senate Bill 5439, which would require divestment of State Investment Board-managed funds from thermal coal companies. The bill is briefly introduced, and members note that a fiscal note has been requested but is not yet available as they begin questions on the briefing.
SB5439 — The chair announces the public hearing on the bill is concluded.
Amanda — Requested to provide a briefing on Senate Bill 5439.
Amanda Cecil — Amanda Cecil briefs the committee on Senate Bill 5439, explaining that it concerns divestment of funds managed by the State Investment Board from thermal coal. After her presentation, the chair opens the floor for questions about her briefing.
Amanda Cecil — Committee staff briefs the committee on Senate Bill 6109.
Amanda Cecil — Amanda Cecil, committee staff, presented Senate Bill 6304, explaining that it concerns incorporating responsible investment principles into State Investment Board decisions. She then concluded the briefing by noting that a fiscal note had been requested but was not yet available and opened the floor for questions.
Barbara Carey / Barb Carey — Barbara Carey introduced herself as a former WSF member and PERS 3 retiree, and continued identifying her affiliations as an ARPEC member and DeVest Washington co-lead as part of her testimony.
Katrin Ganswint / Katrin Gansund — Introduced herself and described research on coal exposure using the Global Coal Exit List.
Noel Frame — Senator Noel Frame asks whether the SIB could use the Global Coal Exit List in the same way other institutions do, seeking an example or any opportunities for its use after referencing a recent briefing from the Investment Board.
Katrina / Katrin Ganswint — Frame directed the question to Katrina/Katrin, the prior witness.
Andrew Eccles — Andrew Eccles, an organizer with 350 Washington, testified that climate change poses a financial risk and that continued coal investments increase long-term pension risk.
Ben Avery — Was expected to testify but could not because of a car accident.
Jeff Johnson — Jeff Johnson introduced himself to the committee, identifying himself as the former president of the Washington State Labor Council and current co-president of the Puget Sound Advocates for Retirement Action, and testified in support of the COAL Act.
Keith Gonzalez — Identified himself as a Department of Ecology employee and Washington Federation of State Employees member.
Bill McKibben — Identified himself as founder of 350.org and The Third Act and a longtime divestment campaigner.
Keith Wagoner — Senator Keith Wagoner is called on and then asks whether the proposal, while framed around coal, would actually apply more broadly to fossil fuels generally, including petroleum, natural gas, and propane.
Keith Wagoner — Called on after the question about current investments.
Keith Wagoner — Asks for the list of offenses that would remain disallowed or allowed under the bill.
Keith Wagoner — Senator Wagoner followed the briefing with a question asking whether the medical cost avoidance would accrue to DOC or to the state, and who would ultimately pick up the shifted costs.
Donna Albert — Donna Albert is called forward as an in-person witness and then identifies herself as a former WSF and PERS retiree and a member of RPEC.
Stuart Henderson — Stuart Henderson is called forward as an in-person witness and then introduces himself as a retired employee and citizen, adding that his security depends on SIB's investments.
Peter Heyman — Peter Heyman is called forward as an in-person witness, then identified as the next witness to testify, and begins his testimony on behalf of 350 Seattle, arguing that fiduciaries must avoid harming pension value over the long term.
Kristen Edmark — Kristen Edmark is introduced and called as the next witness, then begins her testimony by thanking Senator Frame and discussing the bill’s flexibility for SIB.