Kalamunda Council has adopted a revised Investment of Surplus Fund Policy, which now gives a preference to financial institutions which do not invest in or finance the fossil fuel industry.
Mayor John Giardina said, “It is important to note several criteria, the investment must be compliant with Council’s Investment Policy with regards to risk diversification and credit rating and the investment rate of interest must be comparable to other similar investments that may be on offer to Council at the time of investment.”
Fossil divestment and investment in climate solutions is the removal of investment assets including stocks, bonds, and investment funds from companies involved in extracting fossil fuels, to reduce climate change by tackling its ultimate causes.
The City joins a number of other Council’s who have taken a similar stance including Swan, Vincent, East Fremantle, Stirling, Bassendean, Armadale and Fremantle.
The City’s monthly financial statement and reports will now include the state of its divestment from fossil fuels.