To: Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Sheryl Bratton
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Supplemental Resolution to Authority to Invest and Reinvest Funds
End
Recommended Action:
Recommended action
Consider a resolution regarding socially responsible investing
end
Executive Summary:
On December 10, 2019 the Auditor-Controller-Treasurer-Tax Collector has an item providing an overview of the investment function of the County Treasurer and providing a discussion of evolving investment opportunities, including Environmental, Social & Governance (ESG) investing, and a review and approval of the Statement of Investment Policy. In conjunction with that item, this item offers the Board the opportunity to pass a resolution affirming the County’s alignment with ESG investing requesting the County Treasurer to take certain actions regarding these principles.
Discussion:
ESG investing is the most recent iteration of an investment trend that started out as either Socially Responsible Investing or one of the various divestment movements from the 1970s and later, e.g.: divestment from South Africa in the 1980s. It seeks to both broaden and deepen the impact of focused investment by bringing certain investment portfolio concepts into consideration.
There are three areas of emphasis for ESG investors: Environmental, where potential investments are weighed based on the corporation’s impact on climate, air and water quality, and other environmental impacts. Social, where corporate behavior is analyzed with respect to human rights, diversity & inclusion, education, and other issues. Governance focus on whether the managerial and ownership structure of the corporation includes protection for stakeholders and looks to minimize the potential for abusive ownership structures.
This item offers a resolution for Board consideration that affirms the County’s commitment to the principles of ESG and requests that County Treasurer take certain actions to forward these goals while remaining within the bounds of California Code governing public investment.
Prior Board Actions:
September 17, 2019: Approval of Climate Emergency Resolution
August 13, 2019: Accepted a report on the conditions at immigration jails and detention centers and approved sending letters to BNP-Paribas and Wells Fargo condemning investments in private detention facilities that are imprisoning immigrant families
Fiscal Summary
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Narrative Explanation of Fiscal Impacts:
There is no fiscal impact to this item.
STAFFING IMPACTS
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Narrative Explanation of Staffing Impacts (If Required):
Attachments:
Resolution
Related Items “On File” with the Clerk of the Board: