CALSTRS Fossil- Free DIVESTMENT Dra RESOLUTION

Presented by Cynthia Kaufman, De Anza College Sco Lankford, Foothill College

Protecng the Planet = Protecng our Pensions ê Dra FA Resoluon urging that CalSTRS Divest from the Top 200 Fossil Fuel Corporaons (within 5 years)

Presentaon Preview

• Scienfic Context – The

• Polical Context – The Fossil Free Movement

• Fiscal Context – Stranded Assets, Collapsing Prices, Legal Liability Exposure

The Carbon Bubble

London Guardian Newspaper Video Animaon April 2013

• hp://www.theguardian.com/environment/interacve/2013/apr/19/ countries-exposed-carbon-bubble-map - 2:26 minutes

Bill Gates’ Carbon Equaon 2016

• hps://www.gatesnotes.com/2016-Annual-Leer - 1:50 minutes

Carbon Bubble > Housing Bubble • “The Carbon Bubble makes the Housing Bubble look small…” --Bill McKibben

• “Fastest-Growing Divestment Movement in History” –Oxford Study

hps://www.youtube.com/watch?v=g_vud-VXEoY

3:00 minutes Sept 2013 – start at 1:00 minutes mark - 3:47

The purpose of Divestment is to take away the ability of fossil fuel companies to influence social policy by taking away their social license.

"In every case we reviewed, divestment campaigns were successful in lobbying for restricve legislaon.“

"Sgmazaon poses a far-reaching threat to fossil fuel companies – any direct impacts of divestment pale in comparison,"

-Ben Caldeco, a research fellow at the University of Oxford's Smith School of Enterprise and the Environment. http://www.theguardian.com/environment/2013/oct/08/campaign-against-fossil-fuel- growing

Carbon Underground 200

• hp://fossilfreeindexes.com/wp-content/uploads/2015/11/CU200_Final_29-Oct-2015.pdf

• The 100 Largest Coal Companies + • The 100 Largest Oil/Gas Corporaons • = the Dirty 200

$3.4 Trillion in Global Fossil Free Divestment Commitments • 505 Instuons Worldwide • $3.4 Trillion Divested hp://gofossilfree.org/commitments/

Academic Instuons Divesng Globally • hp://insideclimatenews.org/news/20032015/map-tracking-academias-fossil-fuel-divestment • In 2013 FHDA became the first CC District in the naon to fully divest from Fossil Fuels – in response to an impacul student presentaon.

Divestment PUTs FHDA On the Map!

CalSTRS and CALPERS Reree Divestment Campaigns • hp://www.fossilfreeca.org

Blackrock Issues Warning:

• “The chief execuve of the world’s largest investor, Blackrock, is calling me on companies that ignore long term risks like .” hp://www.climatechangenews.com/2016/02/05/blackrock-worlds-largest-investor-flags-up-climate-risk/

Rockefeller Oil-Heirs Divest

• Rockefeller Brothers Fund Divests • Rockefeller Heir Goodwin Divests …wrote an op-ed in the LA Times stang she had “lost faith in Exxon/Mobile’s future value.”

Construcve Engagement: Failed Strategy “How we approach the management of climate change risk is where we diverge from those who advocate for divestment. CalSTRS believes that construcve engagement is the beer path to influencing a company’s behavior...” -- Christopher J. Ailman, CALSTRS Chief Investment Officer

CALSTRS 2015 green iniave task force report

CA and NY Aorney Generals Invesgang Exxon • Think Progress: California Invesgates Exxon • Times: Invesgaon of Exxon in New York State

Carbon Investment Violates CalSTRS’ Own 21-Risk-Factors Policy? “The investment’s long-term profitability from acvies and exposure to environmental maers such as: depleng or reducing air quality, water quality, land protecon and usage, without regard for remediaon. Consideraon should be given to how a company is dealing with the impact of climate change, including whether the government is taking steps to reduce its impact, exacerbang the problem, or oblivious to the risk.”

CALSTRS 21 Risk Factor Policy

Clinging to Carbon Costs STRS Billions* * hp://ecowatch.com/2015/08/14/pension-funds-fossil-fuel-holdings/ “Had CalPERS and CalSTRS listened to the sciensts and the college kids ... and goen out of coal before it collapsed, they would have avoided those shocking losses.” –LA Times Op/Ed hp://www.lames.com/opinion/op-ed/la-oe-0818-mckibben-calpers-fossil-fuel- investment-20150818-story.html

Paris COP21 – 189 Countries

FA Resoluon: Divest within 5 years