HomeMy WebLinkAbout09 - Investment Policy Update - CorrespondenceReceived After Agenda Printed
September 28, 2021
Item No. 9
Re: Council Agenda Item #g Investment Policy Update
September 26, 2021
Dear City Council,
I'm not a finance expert, but you know I love to give my two cents. I've noticed a growing trend of companies
and agencies divesting from not sustainable industries, such as fossil fuels. It's a bad investment as the chart
below shows. And here are some of the big news in recent years:
• In 2015, SB -185 (De Le6n) Public Retirement Systems: Public Divestiture Of Thermal Coal Companies became
a law.
• In 2018, SB -964 (Allen) Public Employees' Retirement Fund And Teachers' Retirement Fund: Investments:
Climate -Related Financial Risk became a law.
• In 2020, BlackRock announced it would ditch investments that it considers a sustainability risk.
• In 2021, Maine's fossil fuel divestment bill became a law.
Coal & consumable fuels N
m
Carbon Underground 200
m
Oil & gas exploration & production c
Integrated oil & gas °
o'
Oil & gas refining, marketing & transportation
Energy equipment & services
Fossil -fired utilities
(that burn coal or fracked oil & gas)
Fossil Free California shows some Cities and Counties have divested from fossil fuels and certain banks. For a
quick reference, Mountain View's Investment Policy has a section called "Prohibited Investments":
6.3.1 No investment is to be made in a company that manufactures cigarettes as identified by the
Investors Responsibility Research Center.
6.3.2 No investment is to be made in entities that manufacture firearms as identified by the Investors
Responsibility Research Center.
6.3.3 No investment is to be made in entities that engage in the direct exploration, production, refining,
or marketing of fossil fuels.
Can Newport Beach add a "Prohibited Investments" section in the Investment
Policy?
How about divestment from big plastics? We know plastic is a fossil fuel
product. A Time magazine article in 2020 showed, "As [Shell] rethinks its
business, it plans to expand in plastics... CEO Ben van Beurden considers the
uncertainty facing his company over the next decade: souring public
perception, shifting consumer behavior, the risk of becoming activist investors'
next target, political leaders' bold promises to dramatically reduce emissions."
I would like to hear your thoughts. Thanks!
Hoiyin Ip
Top io Largest
Plastic Producing Companies ii
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Source: Plastics Technology