Divest from Fossil Fuels Platform

Part of the 350PDX Climate Justice Platform 2024

Context

Divestment from fossil fuels and socially responsible investment (SRI) are important because they are ways for the City of Portland to support its climate and equity goals through the investments it makes. Investments in corporations that are causing climate change, environmental injustice, and human rights abuses support these harmful practices; instead, the City’s money should encourage a just transition to a sustainable future for people and the planet. Disclosing the corporations and industries that constituents’ money is being invested in allows the City to make more informed decisions and receive input from the community.

Portland used to have a Socially Responsible Investment (SRI) Committee, charged with making recommendations about corporate investments to avoid based on a council-approved list of social and values concerns. This committee was disbanded in 2017, when the City Council said they would avoid the issues of SRI altogether by not investing in corporate securities. In 2019–2021, the City annually adopted a short list of corporate securities that were the only allowable corporate investments.

In December 2021, the City Council decided to again invest in corporate securities, but with a list of prohibited industries (Resolution 37558). Though this list disallows investment in some forms of oil, the list still allows for investment in coal and fracked gas, and does not screen for human rights abuses or poor labor standards.

Actions

1. Commit to socially responsible investing (SRI).
   1. City council is to ensure that money being invested is being done so responsibly, into industries and organizations that are beneficial, and not into industries and organizations that are detrimental, to the community and the environment.
   2. SRI includes screening for and removing harmful investments in areas such as: fossil fuels, labor practices, human rights abuses, and other business models or products that harm people and ecosystems.
2. Reinstate the Socially Responsible Investment Committee, or create a similar body that can determine a socially responsible investment strategy.
   1. This new committee or other body (such as a committee of City Council members) must be informed by public engagement.
   2. The new committee or other body would be tasked with:
      1. Analyzing where money is being invested currently.
      2. Identifying detrimental industries and companies that are currently being invested in by the City (i.e. fossil fuels, coal, nuclear weapons, corporate securities, human rights violations, etc.).
      3. Coming up with a plan to invest this money elsewhere (i.e. clean energy and other climate solutions, companies with strong human rights and labor standards) by amending the list in Resolution 37558, Appendix “A,” that was approved by City Council in December 2021.
3. Quarterly financial reports that disclose all investments are to be produced and available to the public, with a space for public commentary to be considered.
   1. City council is to work with the City Finance Department to produce a quarterly financial report that discloses all divestments, as allowed by law, to ensure that socially responsible investments are being made.
   2. A public forum will follow the publication of this report with opportunities for the public to voice any concerns and suggestions. Suggestions will be taken into consideration with the possibility of adjustments to future investment strategies to make them more sustainable and to uphold strong labor practices and human rights.

Case Studies

“Berkeley’s ESG Investing Initiative,” City of Berkeley Investment Policy, July 1, 2024, p. 20, https://berkeleyca.gov/sites/default/files/documents/investment-policy.pdf.

Divest Oregon, https://www.divestoregon.org/.

“Divest/Invest,” New York City Mayor’s Office of Climate & Environmental Justice, https://climate.cityofnewyork.us/subtopics/divest-invest/.

Joana Costa Figueira, “12 major cities commit to divest from fossil fuel companies,” Climate Action News, September 25, 2020, https://www.climateaction.org/news/12-major-cities-commit-to-divest-from-fossil-fuel-companies.

Citations

“Adopt City of Portland Investment Policy Exhibit a-1,” City of Portland, https://efiles.portlandoregon.gov/Record/14777817/ (see the previous list of specific companies that were not allowed, Appendix “A,” page 10).

“Adopt City of Portland Investment Policy Exhibit a-2,” City of Portland, https://efiles.portlandoregon.gov/Record/14777822/ (see list of prohibited industry classifications in Appendix “A,” page 10).

“Divesting from Fossil Fuels, Investing in Our Future: A Toolkit for Cities,” C40 Knowledge Hub, https://www.c40knowledgehub.org/s/article/Divesting-from-Fossil-Fuels-Investing-in-Our-Future-A-Toolkit-for-Cities?language=en_US.

Jessica Floum, “Portland to stop corporate investing despite Mayor Ted Wheeler’s opposition,” The Oregonian, April 6, 2017, https://www.oregonlive.com/politics/2017/04/portland_to_stop_corporate_inv.html.

Resolution 37558, City of Portland, adopted December 22, 2021, https://www.portland.gov/council/documents/resolution/adopted/37558.

Sandy Polishuk, “Background on the Portland Socially Responsible Investment Committee,” 350PDX website, April 19, 2024.

Sean Tenney, “Should Portland Invest in Coal and Nuclear Weapons?” Oregon Physicians for Social Responsibility website, December 21, 2021.