Our commitment to divest from fossil fuel companies and champion investments in the green economy
The COVID-19 crisis has come with dramatic human, social and economic cost, and painfully reminded us of the fragility of the world we live in. At the same time, the climate crisis is accelerating and demands urgent action.
As we start to rebuild our economies to recover from the pandemic, we must act with urgency to ensure climate breakdown doesn’t become an even bigger crisis for the global economy and our communities worldwide. As mayors of some of the world’s most influential cities, we are determined to lead the way by divesting financial assets from fossil fuel companies and championing investments in the green economy whenever possible. The financial case for divestment is clear: Current market conditions and the long-term outlook for the coal, oil, and gas sectors reinforce the risks to fiduciaries. This is not just a health and environmental necessity, this is an economic imperative.
Through green investments, we will promote the transition to a more resilient, prosperous and sustainable economy. We will also use our influence to call on other actors to join us in creating the resilient and sustainable economy we all need. Now is the time for all governments and financial actors to step up their climate ambition, by directing investments away from fossil fuels and towards sustainable industries that are necessary to create new, good jobs while protecting the climate.
We will:
- Take all possible steps to divest our city assets from fossil fuel companies and increase our financial investments in climate solutions to help promote decent jobs and a just and green economy.
- Call on our pension funds to divest from fossil fuel companies and increase financial investments in climate solutions to help promote decent jobs and a just and green economy.
- Advocate for fossil-free and sustainable finance by other investors and all levels of government, including by promoting the importance of strong, long-term climate policies and demanding greater transparency.
To meet this commitment, we, as mayors, will take one or more of the following actions:
1. Make a commitment to increase our investments in climate solutions and the green economy, and to divest municipal investments from fossil fuel companies.
2. Encourage the city — or other relevant — pension fund to develop a policy to divest from fossil fuel companies, as part of a wider climate risk management strategy.
3. Encourage the city — or other relevant — pension fund to develop a policy to invest in climate solutions as part of a wider climate risk management strategy.
4. Monitor progress and communicate this progress to C40 on an annual basis, by requesting regular progress reports on how the relevant portfolios are managing climate-related financial risks and opportunities.
5. Use our influence to advocate for investments in climate solutions and divestment from fossil fuels by other actors, such as private financial institutions and our regional and national governments.
Divesting from fossil fuels and increasing sustainable assets is a long-term commitment. To make progress on the above actions, upon endorsement of the Accelerator, we will develop and share an action plan with C40. The first step may be to assess the exposure of relevant portfolios to fossil fuel companies and other climate-related financial risks, as well as to green and sustainable assets, for example by following the Taskforce for Climate-related Financial Disclosures.
Signatory cities:
Auckland, Berlin, Boston, Bristol, Cape Town, Copenhagen, Durban (eThekwini), Glasgow, London, Los Angeles, Milan, New Orleans, New York, Oslo, Paris, Pittsburgh, Rio de Janeiro, Seattle, Vancouver
For new signatories, download the planned actions template here and submit to divestinvest@c40.org for review.