REQUEST FOR DECISION
DATE: June 5, 2017 Report No. FIN-17-010
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
Socially Responsible Investments
End
RECOMMENDATION:
Recommendation
That Council provides direction regarding the completion of the MFABC survey on Socially Responsible Investing and direct staff to revise the current Council Policy FIN-04 Investment of All Surplus Funds
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RELEVANT POLICY:
Community Charter S183; Council Policy FIN-04 Investment of All Surplus Funds
STRATEGIC RELEVANCE:
This decision does not relate to any specific strategic priority or objective
BACKGROUND:
The issue of socially responsible investing ("SRI") has been developing for some time now resulting in a number of financial institutions and investment organizations that have developed mission statements and mandates in this area. Fossil fuel divestiture is still an emerging issue and the investment market has not yet created instruments in this area that are compliant with legislation governing municipal investments.
Currently there are limited opportunities to invest strictly in socially responsible investments. To date, these investments have not offered the same historic or guaranteed rates of return as non-SRI investments and in Canada these investments generally tend to be in mutual funds, which are prohibited under the Community Charter.
The Community Charter includes regulations for investing municipal funds which specifies that money held by a municipality that is not immediately required may only be invested or reinvested in one or more of the following:
(a) securities of the Municipal Finance Authority;
(b) pooled investment funds under section 16 of the Municipal Finance Authority Act;
(c) securities of Canada or of a province;
(d) securities guaranteed for principal and interest by Canada or by a province;
(e) securities of a municipality, regional district or greater board;
(f...
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