D.C. pension board ignites debate after pulling ‘direct’ investments from fossil fuels
Before delving into the topic, let’s start with an exciting article to set the mood. One intriguing development in 2019 is the noticeable difference in bullish sentiment towards the stock market compared to its historical average of 39. Despite being in one of the longest bull markets in history, bullish sentiment has traded significantly below this average. In contrast, the sentiment surrounding Bitcoin is nearing the euphoric stage, as indicated by the anxiety gauge readings for the Bitcoin market.
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Bitcoin ETF Update: Will Bitcoin Continue Trending Higher
On Tuesday, the D.C. Council unanimously passed a resolution supporting the divestment of the city’s $6.4 billion pension fund from direct investments in 200 fossil fuel companies. Climate advocacy groups praised the decision, while critics dismissed it as merely symbolic.
The council’s vote comes after a three-year effort led by DC Divest, an organization dedicated to divestment. Council member Charles Allen joined DC Divest at a press conference on Monday to commend the D.C. Retirement Board for their actions.
“I commend the D.C. Retirement Board for making a commendable decision that benefits all residents of Washington,” stated Mr. Allen, a Democrat representing Ward 6. “Historically, divestment has proven to be a powerful tool for positive change. By divesting from fossil fuels, D.C. has paved the way for a more promising and sustainable future.”
Matt Grason, spokesperson for DC Divest, expressed his appreciation, saying, “The nation’s capital has taken an important stride in generating the necessary political determination for climate action.”
Critics of divestment argue that the recent decision made by the pension board holds little significance because, like many institutional investors, the majority of their portfolio consists of investments in mutual funds, co-mingled funds, and private equity, which indirectly invest in fossil fuels. While the board has divested from direct holdings, this approach is seen as a way to appease divestment activists without incurring the costs associated with eliminating all investments in fossil fuels. This strategy has become known as the “Syracuse model” after Syracuse University’s similar decision in 2015 to remove its direct investments in fossil fuel companies. Full Story
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