BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Amend Fiscal Year (FY) 2017-2018 District Investment Policy to Incorporate Socially Responsible Investment (SRI) Objectives.
End
RECOMMENDATION:
Recommendation
Approve the Amended FY 2017-2018 District Investment Policy to incorporate socially responsible investment objectives.
Body
SUMMARY:
On May 19, 2017, the Board adopted the FY 2017-2018 District Investment Policy, which prioritizes safety, liquidity and yield of the District's pooled investment fund. The proposed amendment to the Investment Policy would incorporate objectives to encourage investments in corporate securities, banking institutions and state agencies considering moral, ethical, environmental, social, and governance (ESG) guiding principles. This approach is in response to Board direction provided to staff during the October 24, 2017 Board meeting.
Staff recommends Board approval of adding the following socially responsible investment objectives to the District's Investment Policy:
3.4 In addition to the investment objectives of safety, liquidity, and yield, the District encourages investing in corporate securities, banking institutions and state agencies that meet the ESG factors. The District shall use best efforts to follow the ESG Guiding Principles and utilize the Investment Evaluation Scorecard to evaluate and approve such investments to ensure compliance with the ESG factors.
3.4.1 The ESG factor shall include considerations for local California based businesses.
3.5 To the extent permitted by California Government Code, while meeting the District's investment objectives for safety, liquidity and yield, the District encourages investing in Negotiable Certificates of Deposit issued by California based banks, up to the Federal Deposit Insurance Corporation limit at the time of such investment which is currently set at $250,000, as amended
The Board also directed staff to evaluate socially responsible vendor selection and procurement...
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