2021-067 Supporting Divestment from Fossil Fuels RESOLUTION 2021-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS
SUPPORTING DIVESTMENT FROM FOSSIL FUELS
WHEREAS, the Intergovernmental Panel on Climate Change 2018 Special Report. Global
Warming of 1.500 calls for dramatic reduction in atmospheric greenhouse gas (GHG) emissions
before 2030 to prevent global warming from exceeding 1.5 degrees Celsius;
WHEREAS, the Carbon Majors Database CDP Carbon Majors Report 2017 shows that 71% of
total global greenhouse gas emissions since 1988 are attributed to the operation and products of
only 100 companies;
WHEREAS, the Banking on Climate Change: Fossil Fuel Finance Report Card 2019 reports that
internationally, banks have invested 1.9 trillion dollars into fossil fuels companies and fossil fuel
infrastructure since 2016 alone;
WHEREAS, according to Carbon Tracker Initiative's report Unburnable Carbon", fossil fuel
companies possess fossil fuel reserves which, if burned, would release approximately 2,795
gigatons of CO., five times the amount that can be released without exceeding 2°C of warming;
WHEREAS, the City Council of the City of Encinitas adopted Resolution 2020-90 Declaring a
Climate Emergency on December 16, 2020; and
WHEREAS, the City of Encinitas has a history of climate leadership, demonstrated by the City's
ambitious and scientifically-sound 2018 Climate Action Plan, and should invest City finances in
alignment with the City's environmental values.
NOW, THEREFORE, the City Council of the City of Encinitas hereby does resolve as follows:
1. The City of Encinitas does not currently invest directly in fossil fuel companies and,
explicitly bans making any future investments or ownership stakes in these entities.
2. The City of Encinitas will send formal communications to pooled fund managers
including the California Pooled Money Investment Accounts/Local Agency Investment
Funds (PMIA/LAIF), California Public Employees' Retirement System (CaIPERS), the
California Asset Management Program (CAMP), and the San Diego County Pool,
requesting:
a. That these pooled fund managers choose or create a methodology to rate an
investment's participation in the fossil fuel sector and/or rate an investment's
favorability according to an Environmental Social Governance (ESG) score, or
similar rating system.
b. That these pooled funds divest current holdings from investments rated
.unfavorably within the developed methodology, over the next 5 years and ban
future investments.
3. The City of Encinitas will communicate via a petition to the pooled fund managers, no
less than annually, until divestment has been accomplished.
4. The City of Encinitas will report annually on any progress of pooled fund divestment.
5. A copy of this Resolution will be shared with local and regional elected officials to
galvanize further support.
PASSED, APPROVED AND ADOPTED this 22nd day of September, 2021 by the
City Council of the City of Encinitas, State of California.
Catherine S. Blakespear, Mayor
ATTEST:
athy Hollywood, it lerk (-)ef UZ)
APPROVED AS TO FORM:
Les ee E. Devaney, City Att r ey
CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby
certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular
meeting of the City Council on the 22nd day of September, 2021 by the following vote:
AYES: Blakespear, Hinze, Kranz, Lyndes, Mosca
NOES: None
ABSENT: None
ABSTAIN: None
Kathy Hollywood, Ci CI rk
'Intergovernmental Panel on Climate Change 2018 Special Report:Global Warming of 1.5*C.-
https://www.ipcc.ch/srl5/
Unburnable Carbon: https://www.carbontracker.org/terms/unburnable-carbon/