Politics & Government
Divesting from Fossils Fuels, Tobacco and Gun Makers on Council Agenda
The Berkeley City Council agenda for April 30 includes an array of divestment proposals, including two items to stop investing in fossil fuels as well as an item to stop investments in tobacco companies and gun makers,
The City of Berkeley's investment policy could undergo significant changes on April 30 when the City Council considers proposals calling for divesting from the fossil fuel industry, tobacco companies and gun manufacturers.
Two items on fossil fuels
There are two differing proposals on fossil fuels – one from Mayor Tom Bates and the other from Councilman Kriss Worthington. Both aim at severing city investments in the fossil fuel industry and urging the state CalPERS retirement fund to do the same, but they take somewhat different approaches.
Find out what's happening in Berkeleywith free, real-time updates from Patch.
Both Bates and Worthington link their proposals to the international movement led by 350.org to combat climate change. One of the movement's key campaigns is divestment in fossil fuels by local governments.
“Berkeley’s climate action plan charts out a vision of a healthy and sustainable city,” Bates said in a statement Thursday. “The City and State’s investments should support a future where all citizens can live healthy lives without the negative impacts of climate disruption.”
Find out what's happening in Berkeleywith free, real-time updates from Patch.
His measure would ask the City Manager to return to the council with a resolution calling for city divestment from publicly trade fossil fuel companies in the next five years. It would also adopt a resolution "urging CalPERS to divest its own holdings in fossil fuel companies from statewide pension investments."
Worthington's measure would ask the City Manager "to examine the feasibility of divesting all City funds from direct ownership of fossil fuel companies and any commingled funds that include fossil fuel public equities and corporate bonds." It would also ask the City Manager to "send a letter to CalPERS requesting they also consider divesting from fossil fuel companies."
Asked how his proposal differs from Bates', Worthington pointed to the request to CalPERS, saying his proposal would seek a collaborative joint appeal from the city and its employee unions that would also seek a breakdown of fossil fuel investments in mutual funds and stocks.
"If we approach CalPERS with the city and employees together, we're going to get a more cooperative reception," he said. His resolution notes that Berkeley "has deposited nearly $1 billion into CalPERS on behalf of city employees." He said also seeking to identify specific investments also would be more likely to win a favorable response from CalPERS.
Bates' office said he "plans to join eight other mayors from across the country to launch a new, nationwide campaign to divest city funds from the fossil fuel industry."
"The City of Berkeley has a history of socially responsible investing," according to the agenda statement from Bates. "Currently, the City complies with the Nuclear Free Act, Responsible Investment Ordinance and the Oppressive States Contract Prohibition. These three ordinances and resolutions guide the City’s investment policies and make sure that the City’s finances are socially responsible and protect the City’s finances in order to ensure liquidity and yield objectives."
Tobacco and guns
A separate agenda item from Bates would direct the City Manager to bring back for council approval a resolution declaring city policy to be "divestment from gun manufacturers and tobacco companies."
"The City of Berkeley does not currently invest in gun manufacturing or tobacco companies," according to a statement from Bates on the item in the agenda packet. "However, the Mayor wants to ensure that the City’s investment policy reflects an official policy of divestment on gun manufacturers and tobacco companies in the future and continue the City’s history of socially responsible investment."
The agenda item statements for the two fossil fuel measures and the proposal on tobacco and guns are attached to this article.
---------------------
Don't miss any news from Berkeley Patch. Get the day's headlines and events – plus any breaking news alerts – by subscribing to the Berkeley Patch email newsletter.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.