Wingecarribee Shire Council’s revised Investment Policy has received the tick of approval following adoption by Councillors earlier this month.
The revised Policy details Council’s investment objectives, and for the first time, includes a policy position on preferencing financial institutions which do not support the fossil fuel industry.
The primary objectives of the policy remain unchanged. These objectives include preserving Council’s capital, ensuring there is sufficient cash to meet operational and capital requirements plus ensuring investments achieve a market rate of return within acceptable risk tolerances.
Council’s Chief Financial Officer Richard Mooney explained the motivation behind the revised policy.
“It’s important to note that since the 2007 Global Financial Crisis Council has adopted a conservative investment policy,” he said. “None of this changes with the updated policy.”
“Two areas where we have made significant updates are (where all other factors are equal), the preferencing of financial institutions which do not support fossil fuel industries and giving priority to local financial institutions.”
Councillor Gordon Markwart said the amendments provide a strong leadership position by Council for the local community.
“These changes are highly significant for both Council and the residents of our Shire,” Councillor Markwart said.
“It means we’re not just focusing on short-term dividends, but also thinking about the legacy we leave our children.”
“We’re sending a clear message to the market place that Council will now give preference to local institutions and those who do not support the fossil fuel industry, when looking at equivalent investment opportunities and their prospective returns.”