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SFERS board reaffirms tobacco, Sudan, firearms, thermal coal and Russia restrictions; all motions pass unanimously
Summary
The SFERS board unanimously adopted staff recommendations across multiple targeted divestment items, reaffirming tobacco restrictions, removing two companies from the Sudan list, updating firearms and thermal‑coal lists, and leaving the Russian restriction framework unchanged.
The San Francisco Employees' Retirement System board voted unanimously to adopt a series of staff recommended changes to its investment restriction lists.
Motion and outcome: Commissioner Bridal moved that the board reaffirm its intent to remain divested from U.S. tobacco companies and adopt the staff’s 2025 list; the motion was seconded and passed unanimously. Staff noted one company no longer met restriction criteria after an acquisition and reiterated the restriction’s long‑term costs were modeled at roughly $150 million in forgone returns since 1998.
Other items acted on unanimously included a staff recommendation to remove two companies from the Sudan restriction list (one because it ceased operations in Sudan, the other because it adopted governance structures staff deemed sufficient to mitigate material risks); an update to firearms restrictions reflecting a corporate name change and the removal of an ammunition business spun out and acquired privately; and five changes to the thermal‑coal list (two adds for companies meeting revenue thresholds, replacements for corporate name changes, and one removal for a spun‑out private company). The board also reaffirmed the Russian restriction’s framework, which limits holdings to companies domiciled in Russia, and recommended no changes for 2025.
Public comment was solicited before each vote; no callers spoke. Staff told the board it will notify the board should on‑the‑ground developments in Sudan change materially. Motions were moved, seconded and carried by unanimous voice votes in each case.
Why it matters: These votes preserve SFERS’ existing framework for targeted divestment across multiple restriction areas and reflect staff application of the board‑approved criteria. The actions update lists to reflect corporate reorganizations and changed business lines, and they change holdings only to the extent companies no longer meet the specified restriction criteria.
Next steps: Staff will update restricted‑list tables and return any future off‑cycle recommendations should new data sets or material changes arise.
