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Councillor Geselbracht Motion re: Update of Current Investment Policy

Climate Resilient Community City Council consideration on Jul 8, 2024

Background

One of the high impact actions that both individuals and organizations can do to combat climate change is to make climate-responsible investments and remove our money from fossil fuel corporations. Counsellor Geselbracht raised the concern that the City of Nanaimo has $200 million invested through various banks, without clarity or transparency on where those investments are being directed. They may include investments in fossil fuel corporations, mining operations in locations with poor environmental and worker protection regulations, or a variety of other irresponsible companies. Counsellor Geselbracht suggested that the City move its investments into “Environment, Social, Governance” funds that are guaranteed to meet standards around environmental stewardship and social responsibility and are governed by a board that is separate from bank or company executives, so that our city’s investments align clearly with our values. This motion asked that staff prepare a report outlining the City’s responsible investment options.

Item Description

That Staff provide a report with options to update the current investment policy to include a percentage of the City’s portfolio be in socially responsible (ESG) and low GHG investments. Report to provide:

Budgetary considerations for socially responsible investments at 10%, 30%, 50%, 75%, 100% of total city portfolio; and,

Updated background on fossil fuel divestment and responsible investing with updated numbers from the October 2021 Staff report and brief summary of practices of other local governments leading in responsible investment.

Votes cast ‘In Favour’ are labeled as 'Climate-Positive' for the climate.