Council and democracy
Home > Council and Democracy > Issue
100 Ethical Investment Report PDF 53 KB
Minutes:
Matter for
decision
The report summarised the issues around developing an ethical investment
policy for inclusion in the Treasury Management Strategy and proposed wording
for such a policy.
Decision of the
Executive Councillor for Finance and Resources
i.
Approved the insertion of the following in
the Council’s 2015/16 Treasury Management Strategy
“Cambridge
City Council notes the risks to both the planet and Cambridge from climate
change and the need to show leadership in advocating a fossil-free future,
including its investments. Where
consistent with our fiduciary responsibilities the Council will avoid direct
investment in institutions with material links to environmentally harmful
activities including fossil fuels.
Cambridge
city Council, in making investments through its treasury management function,
full supports the ethos of socially responsible investments. We will actively seek to communicate this
support to those institutions we invest in as well as those we are considering
investing by:
·
Encouraging those institutions to adopt and
publicise policies on socially responsible investments.
·
Requesting those institutions to apply those
deposits in a socially responsible manner.
Counterparties will be advised of this
statement”.
Reason for the
Decision
As set out in the Officer’s report.
Any Alternative
Options Considered and Rejected
Not applicable.
Scrutiny
Considerations
The Committee received a report from the Head of Finance who made the
following comments:
i.
The Council invested in building societies.
ii.
There was guidance that the Council had to
comply with in relation to investments which included the security, liquidity
and yield of the investment.
iii.
It would be difficult to measure ethical
considerations.
The Committee discussed what a socially irresponsible investment might
be and discussed, as an example, Shell in Nigeria.
In response to Members questions the Head of Finance confirmed the
following:
i.
The Council did not invest in equity or
corporate bonds.
ii.
Regarding the investments discussed by the
Committee, for example Shell in Nigeria, there would be financial arguments for
the Council not investing rather than ethical reasons.
The Committee unanimously resolved to endorse the recommendations.
The Executive Councillor for Finance and Resources approved the
recommendations.
Conflicts of
Interest Declared by the Executive Councillor for Finance and Resources (and
any Dispensations Granted):
Not applicable.