The City Council on Monday is expected to consider amending the city’s investment policy to prohibit investments in companies involved in fossil fuel production, weapons manufacturing, tobacco and private prisons.
The proposed amendment follows months of discussion by the City Council’s Legislative Policy Committee over how Pasadena should approach environmental, social and governance investment standards, commonly known as ESG investing.
During public comments some have urged the City to consider boycott and divestment policies involving companies doing business in Israel, including Boeing, Chevron and Caterpillar.
The City does not have investments in those companies, but they are part of the police and fire pension funds which the City does not control.
“With most sincere wishes for peace on earth for everyone everywhere, I still, respectfully ask the City of Pasadena to focus its work on important complex Local issues within its purview, and not wade into international affairs beyond its jurisdiction,” said Aviva Zierle. “I encourage you, for the reasons included in the Jewish Federation’s recent letter regarding Boycott, Divestment, and Sanction (BDS) Israel, to oppose any BDS efforts within the City.”
In correspondence after the agenda was posted, some people called on the City to focus on the City’s business.
The Legislative Policy Committee ultimately concluded there was not support for pursuing Israel-related divestment but directed staff to review investments connected to industries more directly tied to existing city policies and priorities.
According to a Department of Finance report, Pasadena first added ESG language to its investment policy in 2021, allowing the city to consider environmental sustainability, labor practices, governance transparency and related social factors alongside traditional financial criteria when managing surplus funds.
The proposed revision would go further by explicitly barring city investment managers from placing surplus funds into companies tied to several specified industries.
“The City Treasurer or any other authorized individual or company managing the investments of the City’s surplus funds shall not invest in companies that engage in the production of fossil fuel, weapons manufacturing, tobacco, or private prisons,” the proposed amendment states.
A subsequent review found the city’s pooled surplus funds already did not include investments in fossil fuel, weapons or tobacco-related companies.
Officials said the proposed policy change would have no fiscal impact on the city.
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