Agenda Text
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That this City support the "Stop The Money Pipeline" movement by calling on the insurance industry to end its insurance for and investments in fossil fuels.
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Official Text
WHEREAS, Somerville acknowledges the reality of climate change and the importance of protecting our planet to ensure the well-being of future generations; and
WHEREAS, Fossil fuel industries are the leading drivers of climate change and insurance companies insure and invest in these industries, with the 40 largest US insurers holding over $450 billion in the coal, oil, gas, and electric utilities sectors; and
WHEREAS, The Somerville City Council and Mayor Curtatone have long recognized the financial and moral imperative to divest from fossil fuels to protect the financial health of the city’s pension portfolio and align itself with climate goals, and in 2017 the Somerville Retirement Board divested from some fossil fuel funds, only to be forced to reverse that decision by PERAC, the Public Employees Retirement Administration Commission which has asserted legislative approval is required to do so, and the city supports House Bill 4440 to allow retirement systems to divest from fossil fuels if they choose; and
WHEREAS: Burning coal produces 60% of the total carbon emissions from the U.S. electric power sector, and under current federal regulations, continues to contribute to a staggering health crisis; and
WHEREAS, Indigenous communities and environmentalists highlight the dangerous use of tar sands oil causing harm by its water-intensive, destructive extraction, refinement processes and its transport; and
WHEREAS, Climate change is increasing Massachusetts’ vulnerability to Nor’easters, hurricanes, inland flooding, winter storms, drought and other heat-related risks, risks that will cause significant damage and represent billions of dollars in insured losses, health costs, annual property tax revenue; and
WHEREAS, US based insurers including AIG, Berkshire Hathaway and Liberty Mutual are the leading insurers of climate-destroying fossil fuel projects around the world and most US insurers continue to invest in fossil fuel companies; and
WHEREAS, In 2016, former California Insurance Commissioner Dave Jones’s 2016 call to the insurance industry to voluntarily divest from thermal coal companies; and
WHEREAS, On May 2, 2018, the City of Paris adopted a resolution calling for insurers to cease any support of the coal industry, heralding a new front in the ongoing movement for divestment from fossil fuels, including coal and tar sands; and
WHEREAS, On July 24, 2018, the City and County of San Francisco adopted a resolution calling on insurance companies to end their investments and underwriting in coal and tar sands industries and projects; and
WHEREAS, On February 13, 2020, the Boulder County Board of Supervisors unanimously passed a resolution calling on the insurance industry to stop insuring and investing in fossil fuels and announcing that the county will screen its own potential insurance providers for those that insure and invest in fossil fuels. From now on, the county will use insurers’ financial support for fossil fuels and plans (or lack thereof) to phase out such support as a determining factor in deciding which insurance companies with whom it will do business; and
WHEREAS, As of April 2020, 19 insurance and reinsurance companies worldwide have adopted policies to limit or end insurance for coal and/or tar sands from future underwriting, and at least 30 insurers will divest from coal and/or tar sands; and
WHEREAS: On May 27, 2020, 38 Massachusetts legislators sent a letter to Liberty Mutual CEO David Long calling on the Boston-based insurance company to stop insuring and investing in fossil fuels; NOW, THEREFORE, BE IT
RESOLVED, That the City of Somerville joins the Stop The Money Pipeline movement calling on the insurance industry to not insure or invest in fossil fuels; AND BE IT FURTHER
RESOLVED, That the City Council requires that the City screen potential insurers and reject those that insure or invest in fossil fuel companies and projects, including coal, oil and gas; AND BE IT FURTHER
RESOLVED, That Somerville Mayor will present this resolution to the Metro Mayors Coalition to encourage them to take similar action, ask the Metropolitan Area Planning Council to share this policy with its network of 101 cities and towns, and with leadership at the Mass Municipal Association and the Mass Interlocal Insurance Association, which provides property and casualty coverage for member governmental entities; AND BE IT FURTHER
RESOLVED, That the Somerville City Clerk send a copy of this resolution to CEO’s of leading US insurers, including Brian Duperreault of AIG, Warren Buffett of Berkshire Hathaway and David Long of Liberty Mutual, urging them to end underwriting of and investments in all fossil fuels; AND BE IT FURTHER
RESOLVED, That the City Clerk send a copy of this resolution to US Senators Warren and Markey; US Congresswoman Pressley; Governor Baker, State Senator Jehlen, and State Reps. Barber, Connolly, and Provost.