A new environmental group is calling on Wollongong City Council to pull ratepayers’ money out of fossil fuel investments, becoming carbon neutral and taking leadership on climate change.
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The Wilderness Society Illawarra has called a public meeting next week to voice the issue, with spokesman Brian Mason saying the council should become a “climate leader”.
“We love Wollongong, from the escarpment to our coast - but climate change puts it all at risk,” he said.
”We want Wollongong City Council to take our funds out of any investment in fossil fuels and become [carbon neutral] in their own operations in the next five years.
“Specifically we are calling for divestment from companies that invest directly or indirectly in fossil fuels.”
The council has about $154 million under investment management, under a government direction that local government surpluses be invested in a certain fashion. This is down from about $157 million a year ago.
Most of of council’s investments are with major banks in term deposits and make a solid return. Over $1 million is tied up in a “growth” fund through NSW Treasury’s T Corp. This fund has been losing money recently.
The T Corp fund is a higher-risk facility which invests in Australian and international shares, as well as cash and property. There is no mention of “ethical investing” options or distinctions between industries.
A Wollongong City Council spokesman said it “doesn’t ask T Corp to invest in specific funds or areas”. But it monitors the investments and is guided by T Corp’s “stewardship strategy”.
“All council’s investments are restricted by a ministerial order which limits council to investing primarily in term deposits with approved deposit taking institutions in Australia,” a spokesman said.
“The only funds manager that council invests with is T Corp, which is allowed under the ministerial order. Council has no direct investments with fund managers.”
T Corp provides investment options for government agencies. A range of investment options, including tailored funds, is available but council council does not tailor its investment.
The Wilderness Society Illawarra will launch its campaign at Corrimal Community Centre on Tuesday, March 28, at 6pm.
