Agenda Text
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Urging the MA Legislature to adopt H3662/S636 to enable independent public retirement systems to use their prudent judgment regarding fossil fuel divestment.
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Official Text
WHEREAS: The Somerville City Council supports an Act Authorizing Independent Retirement Systems To Divest From Fossil Fuel companies; and
WHEREAS: Massachusetts House Bill 3662/Senate Bill 636 seeks to allow all independent public retirement systems subject to oversight by the Public Employee Retirement Administration Commission (PERAC), which includes the Somerville Retirement System, to divest their holdings in full or in part from the fossil fuel industry; and
WHEREAS: H.3662/S.636 authorizes independent public retirement systems to exercise their fiduciary duty as defined by M.G.L. Chapter 32 Section 23(3), with respect to continued investment in the fossil fuel industry; and
WHEREAS: Such authorization is required by PERAC, per its letter to the Somerville Retirement Board (SRB) dated November 7, 2017; and
WHEREAS: Attorney General Healey has opened an investigation of Exxon Mobil concerning potential violations of M.G.L. c. 93A, Section 2, arising both from Exxon's (1) marketing and/or sale of energy and other fossil fuel derived products, and (2) marketing and/or sale of securities, to investors and consumers in the Commonwealth of Massachusetts; and
WHEREAS: Attorney General Healy’s investigation seeks information regarding whether Exxon misled investors with respect to the impact of fossil fuels on climate change, and climate change-driven risks to Exxon's business; and
WHEREAS: Energy was the second-worst performing sector in 2017 <http://ieefa.org/wp-content/uploads/2018/07/Divestment-from-Fossil-Fuels_The-Financial-Case_July-2018.pdf>, losing 4% when the S&P 500 overall gained more than 19%, and the worst performing sector in 2018 <http://ieefa.org/ieefa-update-2018-ends-with-energy-sector-in-last-place-in-the-sp-500/> with losses of 20 percent; and
WHEREAS: The coal industry, which has faced stiff competition from lower natural gas prices and increasingly competitive wind and solar generation, continued its secular decline in 2017, while large numbers of coal plant retirements occurred alongside declining generation from remaining units; and
WHEREAS: Somerville and communities throughout Massachusetts, including Amherst, Boston, Brookline, Cambridge, Concord, Falmouth, Framingham, Great Barrington, Lexington, Lowell, Newton, Northampton, Provincetown, Sudbury, and Truro, have passed resolutions in support of fossil fuel divestment; and
WHEREAS: Institutional investors across the globe, including the pension systems of New York City, London, and the sovereign wealth fund of Norway, have either divested or pledged to divest from the fossil fuel industry; and
WHEREAS: This Council, on February 7, 2018, approved a home rule petition calling on the Commonwealth to allow the SRB to divest from the fossil fuel industry and, on June 26, 2014, unanimously approved a resolution urging individuals, colleges and universities, foundations, and governments to divest their funds from publicly traded fossil fuel companies, NOW THEREFORE, BE IT
RESOLVED: That the Somerville City Council strongly supports House Bill 3662/Senate Bill 636 and urges the Massachusetts Legislature to take action to pass this measure to enable independent public retirement systems to use their prudent judgment in regards to fossil fuel divestment; AND BE IT FURTHER
RESOLVED: That the City Clerk forward a copy of this resolution to Somerville’s legislative delegation as well as to the chairs and vice-chairs of all legislative committees to which H.3662/S.636 is assigned, House Speaker DeLeo, Senate President Spilka and Governor Baker.