City of Pittsburgh divests from fossil fuels
Over the course of 2020, Mayor William Peduto worked with the Comprehensive Municipal Pension Trust Fund (CMPTF) to divest the City’s pension funds from fossil fuel industries.
The decision will translate into new “Socially Responsible Investing” guidelines to screen for pension investments in companies that follow environmentally friendly and socially responsible business procedures. The ICLEI and GLCN member is now working to implement on the guidelines.
In July 2020 Pittsburgh and 16 other cities cosponsored a policy adopted by the U.S. Conference of Mayors urging cities across the globe to explore divesting from fossil fuels and invest in climate solutions to support a green recovery and a just transition.
“When we began our work to develop Pittsburgh's third climate action plan, we realized that responsible investing by our pension fund is one of the most critical tools not only in advancing a just and clean energy transition but a move that is simply a good economic investment strategy too," Mayor Peduto said.
By investing in companies that practice responsible initiatives in a transparent manner, the city is encouraging behaviours that align with underlying values and beliefs around sustainability and responsibility. Positive screens will include aspects such as
Protection of the Environment:
- Consider companies that engage in development and implementation of environmentally friendly products and services.
- Consider companies that preserve the planet’s ecological heritage and creating environmentally sensitive and innovative technologies
- Consider companies that undertake energy conservation initiatives and develop alternative renewable and clean energy resources
Promotion of Human Dignity
- Encourage efforts by companies to promote a respect for fundamental human rights throughout the countries in which they operate and sale products or services
- Encourage efforts by companies to promote the active participation of women and minorities in the representation and management of the company, particularly in creation of company policies and decision-making as well as inclusion in executive and corporate leadership
- Favor companies who strive to make a positive impact on housing, health care and other necessary services that improve the quality of life for the under-served population
- Favor companies that engage in practices or policies intended to end human trafficking.
Find out more here.