Divestment Reports
Reports Required by Act 44 of 2010 and Act 132 of 2022
Act 44 of 2010 requires Pennsylvania's public funds to compile and publish lists of "scrutinized companies" identified as having certain business operations in Iran or Sudan. (See Note 1 below.) Furthermore, the Act prohibits Pennsylvania public funds from acquiring the securities of scrutinized companies and requires them to divest the securities of scrutinized companies that fail to take action required by the Act with respect to their scrutinized activities within a specified period of time.
Act 132 of 2022 requires Pennsylvania's public funds to compile and publish lists of "scrutinized companies" identified as subject to US sanctions or that are domiciled in Russia or Belarus. Furthermore, the Act prohibits Pennsylvania public funds from acquiring the securities of scrutinized companies and requires them to divest the securities of scrutinized companies.
Because they face the same responsibilities, the Pennsylvania Treasury Department, the State Employees' Retirement System, the Public School Employees' Retirement System, and the Pennsylvania Municipal Retirement System ("the Four Funds") have chosen to work together to comply with the Act. The Four Funds coordinate their activities through the Pennsylvania Treasury Department.
The reports are provided on behalf of the Four Funds and have been prepared pursuant to the reporting requirements found in Act 44 of 2010 and Act 132 of 2022.
Note 1: On December 14, 2020, the U.S. federal government rescinded Sudan’s designation as a State Sponsor of Terrorism. As a result of that action, and pursuant to Section (6)(b) of the law, Act 44 of 2010 no longer relates to Sudan.
Reports Required by Act 57 of 2023
Act 57 of 2023 requires the Pennsylvania Treasury Department to publish a list of any “individual, corporation, partnership, limited liability company, business trust, association, estate, trust, foundation, business entity or government entity who is owned or controlled by, or acting for or on behalf of, Russia or Belarus as defined by the Office of Foreign Assets Control of the United States Department of Treasury.” Entities on this list are prohibited from certain activities, such as being a party to a contract with a Commonwealth agency, applying for a grant from a Commonwealth agency, or receiving a tax credit from the Commonwealth.
Act 57 of 2023 also requires the Pennsylvania Treasury Department to “develop a list of critical materials and critical minerals as identified as critical by the United States Department of the Interior under Executive Order 13817.” Because the U.S. Department of the Interior has created and posted that list (the original list was published in 2018; an updated list was published in 2022), Treasury hereby adopts the most recently updated list for purposes of complying with Act 57.
