PESP delivers testimony in support of four bills in Massachusetts Legislature

On Wednesday, July 16, 2025, PESP delivered public testimony in support of four bills currently being considered by the Massachusetts Legislature. The bills were being considered by the Joint Committee on Public Service, which includes members from both the Senate and the House. PESP Climate & Energy Director Alissa Jean Schafer provided brief comments virtually and submitted a comment in writing, which can be viewed below.

PESP applauds the leadership of the bill sponsors on these critical issues of climate related financial risk and the fiduciary responsibility that institutional investors have to make wise investment decisions when it comes to their public pensions, including the Massachusetts Pension Reserves Investment Management (Mass PRIM.)

Now that these bills have been heard in the Joint Committee, they will be reviewed by committee members, alongside the submitted testimonies. The committee will then issue one of three possible recommendations: a “favorable report” (ought to pass), “adverse report” (ought not to pass), or a “study order” recommending that the bill be studied.^[1] Bills receiving favorable reports would then be eligible to be scheduled for debate and votes by the full House or Senate chamber (depending on where they originated) before potentially becoming law. Massachusetts Legislature operates under a biennial session format and is currently in a 2025-2026 session. November 19, 2025 is the last day for formal sessions this year. We will continue to track these bills as they move forward.

Public Comment for Joint Committee on Public Service, July 16, 2025
Regarding: H.4126, H.2811, H.2904 and S.1861.

Thank you, Chair Ryan, I’m Alissa Jean Schafer from the Private Equity Stakeholder Project (PESP). Our research shows that private equity investments by Mass PRIM are generating $3.1 billion in annual health costs for Massachusetts residents. This cost is just one example of financial climate risk hidden in public pensions’ investments in private equity. I’m here to support four bills related to this risk – H.4126, H.2811, H.2904 and its Senate companion S.1861.

PESP is a nonprofit watchdog organization focused on shining a light on the private equity industry. A lot of our work is research that seeks to understand the scope of investment by PE firms and other private markets managers in a variety of areas (including housing, labor/jobs, healthcare, and climate/energy). We also often work with frontline communities impacted by these investments.

There is a lack of transparency and disclosure when it comes to private equity investments, even when public pension dollars are being used. It is our hope that our research can be a resource for this legislative body as important considerations are made regarding these investments.

Based on the global fossil fuel asset tracker, as one example, we found that Mass PRIM is invested in at least 56 different fossil fuels assets through its $650 million^[2] in exposure to the associated private equity firms, specifically Quantum and Blackstone energy funds. These fossil fuel assets include oil and gas exploration and production, coal and gas-fired power generation, pipelines, and liquefied natural gas terminals.

A new Private Equity Climate Risks report found that air pollution from Quantum and Blackstone-backed fossil fuel projects are responsible for an estimated $3.1 billion in health-related costs each year in the United States, as I mentioned. These health impacts include an estimated 175,000 asthma incidents, 453 emergency room visits, and over 3,700 lost work days annually.

We are excited to see these bills introduced by the sponsors and appreciate their leadership on these issues.

H.4126 An Act to align public pensions with Massachusetts’ net zero future – We applaud the considerations included in this act specific to workforce training and support for the retirement of fossil fuel assets. Additionally, we support the integration of climate risk into investment decisions, as a matter of fiduciary responsibility. As outlined in our organization’s investor toolkit, climate risk is financial risk, and public pensions must consider the potential negative financial impact of continued investment in fossil fuels.

Projections of economic damages from the climate crisis are soaring, creating a material concern for fiduciaries with a long-term investment horizon. Since 2021, the US alone experienced climate-related weather disasters costing over $460 billion that caused over 1,800 deaths. Climate change damages are projected to cost $38 trillion a year by 2049, cutting nearly 20% of global income.

These financial climate risks also lead us to similarly support H.2811 An Act to mandate the review of climate risk in order to protect public pension beneficiaries and taxpayers.

H.2904 and companion S.1861- An Act authorizing independent retirement systems to divest from fossil fuel companies – We support this initiative and urge lawmakers to also consider private equity investments when reviewing exposure. As previously noted, Mass PRIM is currently invested in a number of fossil fuel assets through private equity, potentially obscuring the nature of the investment. The full portfolio of a private equity firm should be considered when determining exposure to fossil fuels and associated financial climate risks.

Again, we applaud the leadership demonstrated by the sponsors of these bills. Thank you, Chair and committee, for your consideration today. We hope to be a helpful resource for your work on these issues.

^[1] https://www.massbar.org/advocacy/legislative-activities/the-legislative-process

^[2] Based on Pitchbook data