Baltimore’s three pension funds will quickly must divest from fossil fuels.
Baltimore Mayor Brandon M. Scott, a Democrat, signed a invoice Monday that requires the $3.5 billion Baltimore City Fire & Police Employees’ Retirement System, the $2.2 billion Baltimore City Employees’ Retirement System and the $31 million Baltimore Elected Officers’ Retirement System to divest from fossil fuels over a five-year interval starting Jan. 1, 2022.
The invoice, initially launched in April by Councilman Mark Conway, a Democrat, reserves flexibility for the pension fund boards and employees to hold out, or, in emergency circumstances, droop implementation of the ordinance.
“The outcomes of runaway greenhouse fuel emissions — extra extreme storms, flooding that threatens neighborhoods, warmth island results which contribute to well being points and burden the town’s infrastructure — are right here in Baltimore,” Mr. Conway mentioned in an announcement.
He added, “Our metropolis divested from apartheid South Africa within the Eighties, and from Sudan throughout the genocide in Darfur. Now, as cities, states, and international locations grapple with the existential menace of local weather change, Baltimore is as soon as once more placing our cash the place our mouth is. And in doing so, we be a part of the rising divestment motion away from the outdated air pollution methods of the previous and towards the sustainable vitality revolution of the long run.”
The pension funds should divest from corporations listed on The Carbon Underground 200, an inventory compiled by FFI Options — previously Fossil Free Indexes — that identifies the highest 100 coal and the highest 100 oil and fuel publicly traded reserve holders globally, ranked by the potential carbon emissions content material of their reported reserves, in keeping with info on its web site.
N. Anthony Calhoun, govt director of the hearth and police fund, welcomed the brand new regulation in an announcement. “Local weather change is actual, so I’m proud to work for a authorities that desires to contribute to the answer,” he mentioned. “ESG goes to redefine investing over the subsequent few years and pension funds and corporations are going to have to regulate.”
A consultant for the staff’ and elected officers’ retirement programs in addition to the mayor’s workplace couldn’t instantly be reached for remark.