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PoMo to analyze investments for fossil fuel connections

The city of Port Moody will investigate the implications of divesting its investments from companies in the fossil fuel sector as well as the banks that support them, but it won’t ask the Municipal Finance Authority of BC (MFABC) to do the same.
fossil fuels
The city of Port Moody will analyze its investments and the implications of divesting them from the fossil fuel sector after a decision by council last Tuesday.

The city of Port Moody will investigate the implications of divesting its investments from companies in the fossil fuel sector as well as the banks that support them, but it won’t ask the Municipal Finance Authority of BC (MFABC) to do the same.

At its meeting last Tuesday, council gave its assent to several motions put forward by Coun. Rob Vagramov to steer city money away from the fossil fuel industry while making a commitment to the MFABC, which administers pooled investments for many of the province’s cities, to support a socially responsible investment fund. Last year, MFABC put development of such a fund on hold until demand from its member municipalities reached $100 million.

But the city won’t make a formal request that the provincial authority abandon all investments it may already have in the fossil fuel sector.

Port Moody Mayor Mike Clay said the city currently has no money invested through MFABC. But in his report to council, Vagramov said it does have more than $37 million in guaranteed income certificates at several banks and credit unions.

Coun. Meghan Lahti said determining how those investments might be supporting the fossil fuel industry can be tricky.

“So many products contain fossil fuels,” she said. “How do we know if anything we’ve invested in has any kind of connection to the fossil fuel industry? Where do you draw the line?”

Coun. Diana Dilworth said charging city staff to analyze the city’s investment portfolio for connections to the fossil fuel industry is a “first step” and Coun. Hunter Madsen said it’s an important step.

“The main thing here is for us to understand it is important for us to make a statement,” he said. “We can’t get puritanical or moralistic about the distinctions we make here, but that doesn’t mean we can’t make those distinctions.”

Clay suggested moving the city away from the fossil fuel sector can be a “guiding principle” for its investments.