FINANCIAL SYSTEMS

IT MATTERS WHERE MONEY GOES

It’s import to consider where our money is invested, who provides our financial services, what types of products and services we buy. How can our financial choices help drive innovation and rapid transition to a renewable, sustainable society?

This area is likely to explore the relationships between organizations and individuals with financial institutions of various kinds:

• Banks
• Insurance
• Pensions systems
• Investments

Climate activists who work in this space are concerned about investments many of the largest lenders, insurance providers and pension systems make in fossil fuel, tar sands, coal and oil and gas extraction projects.

In addition to discouraging these undesirable investment choices, there may be opportunities to encourage those that are more environmentally and socially compatible with the Boulder community’s values.

The City of Boulder has long been a leader in innovative and environmental change, and the area of finance is no exception. But systemic change means reimagining the underpinning laws, infrastructure and economy of our entire system. The city will continue to support new ways to solve these grand challenges.

WHY IT MATTERS FOR CLIMATE

BOULDER’S LEADERSHIP

WHERE WE ARE

Boulder City Council has indicated its support for state and federal legislation that would provide local governments with increased options for banking, including both the option to create a public bank, as well as to invest with and receive other banking services from credit unions insured by the National Credit Union Administration. Council’s legislative agenda included supporting state legislation that would permit cities to bank with credit unions. The city plans to continue to support these efforts in 2020.

PUBLIC BANKING AND CREDIT UNIONS

INVESTMENT PORTFOLIO

The city does not utilize any financial firms associated with pipeline construction for any investments and does not invest any funds into:
• Fossil fuels including pipeline construction and extraction
• Firearms or weapons not used in national defense
• Tobacco companies

POSITIVE IMPACT INVESTING

The city can continue to seek investments with a consideration to the potential positive impact investments can make. In the past year, the city has purchased a municipal bond issue that was associated with the construction and management of affordable housing.

The city is looking to further its investment guidelines to incorporate the use of environmental social governance ratings to ensure we are investing in entities that align with the city’s values.

GAME CHANGERS

There is a lot of work to be done here – by the city as a local government, but also by other major employers and customers of financial institutions. We must work together to find solutions to the problems posed by our economic system that will help create a more just, sustainable society.

This could allow the city to bank within our own community with organizations that may more closely align with the city’s values.

APPROVAL OF THE USE OF A PUBLIC BANK OR CREDIT UNIONS BY THE STATE OF COLORADO

REDUCED INVESTMENT IN FOSSIL FUELS BY LARGE FINANCIAL INSTITUTIONS

This would include banks as well as insurers that insure or invest in fossil fuels. This combined with an increased investment in renewable energy by these organizations could be a significant systemic change.

CONTINUED EFFORTS TO INVEST IN ENTITIES THAT SUPPORT SUSTAINABLE AND EQUITABLE RENEWABLE ENERGY

This type of “Green Investment Banking” by both the city and others in the Boulder community could shift the market in ways that make more sustainable options possible.