The City of Richmond could put up to 20 per cent - about $272 million - of its investment funds in a 10-year “low-carbon” fund.
The fund being recommended by city staff, managed by Phillips, Hager & North Investment Management, is in low-volatility assets, for example, Canadian equities (private and public companies), bonds, mortgages and real estate.
This includes a “significant portion” that is fossil-free investment, according to a city staff report going to council’s finance committee next week.
About two years ago, city council asked its staff to look into investments made by the City of Richmond and come back to council with recommendations to possibly change them.
While city council didn’t support a motion from former Coun. Kelly Greene at that time to look at divesting from fossil-fuel investments, another motion to look at the city’s “policy and portfolio and report back” was supported by council a couple weeks later.
Next week’s finance report noted there are many different standards that exist for sustainability reporting, and this has led to “confusion and inconsistent disclosure in the market.”
In November, a new International Sustainability Standards Board was announced at the UN Climate Change Conference, and the Canadian Sustainability Standards Board will work with the UN board to bring a more standardized approach to guide companies on sustainability disclosures in financial statements.
Morgan Stanley Capital International assessed the city’s investment portfolio and gave the city an “AA” rating. (The highest rating is “AAA” and the lowest is “CCC.”)
The city currently has about $1.36 billion in cash and investments.
