To: BOARD OF SUPERVISORS
From: Supervisor Williams
Meeting Date: November 5, 2024
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Department Contact: |
Supervisor Williams |
Phone: |
707-937-3500 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 15 Minutes |
Agenda Title:
title
Discussion and Possible Action Regarding a Request that the County Treasurer Plan to Divest from Royal Bank of Canada
(Sponsor: Supervisor Williams)
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Recommended Action/Motion:
recommendation
Request that the County Treasurer plan to divest from Royal Bank of Canada.
End
Previous Board/Board Committee Actions:
On February 6, 2024, the board passed Approval of Mendocino County Investments Policy for Calendar Year 2024 which included “Investments are discouraged in entities that receive a significant portion of their revenues from fossil fuels, the manufacturer of tobacco products, firearms, or weapons not used in our national defense.”
Summary of Request:
The Board has outlined in the investment policy their desire to ensure County Treasury Pool funds are invested in a Socially Responsible manner. The Board must carefully consider the fiduciary duty to all County constituents in managing the investment portfolio. The Board understands the three core and primary investment objectives are 1. Safety, 2. Liquidity, and 3. Return on Investments/yield. The County must balance the responsibility to preserve financial health by protecting principal, maintaining adequate liquidity, and achieving reasonable returns in line with the first two priorities. In the event all general objectives mandated by state law and set forth in Section III of the investment policy are met and created equal, investments in corporate securities and depository institutions will be evaluated for social and environmental concerns.
While the current investment portfolio is in compliance with the current investment policy there may be alternative investments which better align with the policy statement around investing in a socially responsible manner. The Board could encourage the county Treasurer to review the current investment portfolio to identify if there are more socially responsible investments which achieve substantially equivalent safety, liquidity, and yield.
In December 2019, Sonoma County Supervisors stated:
“… Investment in the fossil fuel industry is inconsistent with (environmental/social/governance) investment principles. (The supervisors) request that the County Treasurer make no new or renewed investments in fossil fuel development corporations to the extent that other, more socially responsible investments achieve substantially equivalent safety, liquidity, and yield.” <https://www.pressdemocrat.com/article/opinion/close-to-home-divest-public-funds-from-fossil-fuels/>
In Sonoma County's most recent investment report from June 2024, Section 4, "The pool does not invest in Fossil Fuel Producers." According to this report, Sonoma County is not invested in Royal Bank of Canada or Bank of America.
<https://sonomacounty.ca.gov/Main%20County%20Site/Administrative%20Support%20%26%20Fiscal%20Services/ACTTC/Documents/Treasury/Publications/Quarterly%20Certifications/FY%2023-24/2024-06%20Quarterly%20Report%20and%20Certification.pdf>
Alternative Action/Motion:
Provide alternate direction to staff.
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
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current f/y cost: N/A |
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budget clarification: N/A |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: N/A
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Direction Given to Staff |
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Date: November 5, 2024 |
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