Anjuli Mishra, a student from SVYCA, inspires this Message.
Good Evening, Menlo Park City Council
As you renew your investment policy for the fiscal year 2024-2025, I strongly encourage you to enhance the policy by prohibiting future fossil fuel investments. Fossil fuel companies are significant contributors to the ongoing climate crisis and are major obstacles to the global transition toward renewable energy. By taking this step, Menlo Park would join other forward-thinking cities like San Mateo, Palo Alto, and San Mateo County, which have already incorporated similar measures into their investment policies.
In April 2023, the San Mateo City Council voted to amend its investment policy. Expressly Section VIII - Prohibited Investments Vehicles and Practices to exclude investments in entities that derive substantial revenue from tobacco products, fossil fuels, firearms, or weapons not used in national defense. Please refer to the Appendix for San Mateo’s 2023-2024 investment policy details.
Similarly, Palo Alto has incorporated ESG (Environmental and Social Governance) criteria into their investment policy. This section discourages direct investments in companies involved in tobacco manufacturing, firearms production, and fossil fuel extraction or drilling. The Appendix contains details from Palo Alto’s 2023-2024 investment policy.
Additionally, in 2023, the San Mateo County Board of Supervisors successfully advocated including a Socially Responsible Investment (SRI) policy in the county’s 2023-2024 investment guidelines. This policy directs the Treasurer to avoid investing in fossil fuel issuers when possible while still adhering to legal and fiduciary responsibilities concerning principal safety, liquidity, and return on investment. The Appendix provides further information on the county’s 2023-2024 investment policy.
Menlo Park holds no corporate bonds in fossil fuel companies, so adopting a similar policy would not affect existing investments. However, it would prevent future investments in fossil fuels, offering two significant benefits:
1. Financial Prudence: Fossil fuels are becoming increasingly risky and speculative investments. The state of New York, after consulting with BlackRock, one of the world’s leading financial and asset management firms, concluded that divesting from fossil fuels is financially responsible due to the historical underperformance of fossil fuel-backed securities.
2. Social Responsibility: Fossil fuel companies continue to disseminate disinformation and heavily influence politics to block strong climate policies in the U.S. By rejecting fossil fuel investments, Menlo Park would make a powerful statement that the city does not support these harmful actions. Given the precedent set by neighboring cities, such a move would resonate even more strongly.
Menlo Park has long been a leader in climate action on the peninsula. By prohibiting fossil fuel investments, the city can ensure its financial strategies align with its environmental values.
I appreciate your consideration.
Zachary Meyer
