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HomeMy WebLinkAboutRESO 9493Resolution No. 9493 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO URGING CALPERS TO DIVEST FROM PUBLICLY TRADED FOSSIL FUEL COMPANIES WHEREAS, the climate crisis is a serious threat to current and future generations here in Palo Alto and around the world; and WHEREAS, the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report found that global warming is already causing costly disruption of human and natural . systems throughout the world including the melting of Arctic ice, the ocean's rise in acidity, flooding and drought; and WHEREAS, almost every government in the world has agreed through the 2009 Copenhagen Accord that any warming above a 2°C (3.6°F) rise would be unsafe, and that humans can only pour about 565 more gigatons of carbon dioxide into the atmosphere to maintain this limit; and WHEREAS, for the purposes of this ordinance, a "fossil fuel company" shall be defined as any of the two hundred publicly-traded companies with the largest coal, oil, and gas reserves as measured by the gigatons of carbon dioxide that would be emitted if those reserves were extracted and burned, as listed in the Carbon Tracker Initiative's "Unbumable Carbon" report; and WHEREAS, in its "Unbumable Carbon" report, the Carbon Tracker Initiative found that fossil fuel companies possess proven fossil fuel reserves that would release approximately 2, 795 gigatons of C02 if they are burned, which is five times the amount that can be released without exceeding 2°C of warming; and WHEREAS, the City of Palo Alto has a responsibility to protect the lives and livelihoods of its inhabitants from the threat of climate change; and WHEREAS, the City of Palo Alto believes that its investments should support a future where all citizens can live healthy lives without the negative impacts of a warming environment; and WHEREAS, studies have shown that fossil free portfolios would have performed better than benchmark indices. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Palo Alto that the Council requests CalPERS to join the City in these efforts and: 1. Immediately instruct its asset managers to stop any new investment in companies and corporations whose operations involve the extraction of fossil fuels; and 2. Ensure that none of its directly held or commingled assets include holdings in fossil fuel public equities and corporate bonds on or after January 1, 2020; and 3. Publish quarterly updates beginning July 1, 2015, available to the public, detailing progress made towards full divestment. 1 INTRODUCED AND PASSED: FEBRUARY 9, 2015 A YES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: KNISS ABSTENTIONS: ATTEST: / ~~ ~ City Clerk {¥ ~STOFORM: Cit)'AttOfileYe= May&r 2 EXHIBIT A Management/Professional Compensation Plan Changes-Effective July 1, 2012 Job Classification Title Grade Control Approx. Hourly Code Code Point Annual 12 EMS Manager TBD 10,000 120,000 57.69 (title and salary change for the EMS Coordinator) 3