Council backs Sacramento investment policy, directs treasurer to return with socially responsible language

The Sacramento City Council approved the City of Sacramento—s annual investment policy (Pool A) on the consent calendar Tuesday and directed the city treasurer to return with a proposed socially responsible investment (SRI) section to be considered for a future update.

Councilmember Mai Vang led the discussion on Item 2 and said she intends to vote for the policy as presented but asked the treasurer to prepare a draft amendment that would insert an SRI section reflecting the city—s values. Vang noted prior informal divestments from fossil fuel and tobacco and said she wanted those practices codified.

"I'd like to provide direction to the city treasurer ... to return with the proposed update, and edits that actually incorporate a socially responsible investment section within the city investment policy," Vang said. She added she would vote yes on the current policy while pursuing the amendment.

Councilmember Steve Hansen Dickinson and other councilmembers supported the request and said they would work with the treasurer and community stakeholders on recommended language. City Treasurer John (last name not specified in the public record of the hearing) explained the city has constraints set by state code for certain portfolios and that the city could make some exclusions but must respect fiduciary duties for pension or other separate portfolios.

Three public commenters — Justine Kansler (350 Sacramento), Amira Al Malla (Reinvest in Sacramento), and Keyon Bliss — urged the council to adopt a formal SRI policy that would broaden divestment beyond fossil fuels and tobacco to include surveillance and weapons manufacturers. Kansler urged the council to "implement a socially responsible investment policy that reflects our values as a city while remaining fiscally responsible." Al Malla said such policy would "divest from all forms of harm and reinvest in the community."

The item was part of the consent calendar and was moved as part of a motion to approve all consent items; the motion carried by voice vote with one abstention noted on a different consent item and one councilmember absent. Councilmembers said they expect to work with the treasurer and community stakeholders to draft proposed language and return the item for council consideration.