Maine will no longer invest in companies with big oil and gas portfolios, making it the first state in the country to divest from the fossil fuel industry.

Maine

Gov. Janet Mills last week signed into law a bill forbidding any state pension fund or annuity from making new investments in stocks or securities of the 200 largest publicly traded fossil fuel companies. It also requires the state treasurer and the board of trustees of the Maine Public Employees Retirement System, known as MainePERS, to review and divest current holdings in fossil fuel players. 

MainePERS manages a $16.5 billion public employee retirement fund, 7.7% of which was invested in fossil fuel companies in 2020, according to documents filed with the legislature.

MainePERS executive director Sandy Matheson told...