On Tuesday, the City of Cape Town’s Mayoral Committee recommended an important amendment to the Cash Management and Investment Policy to show just how serious the City is about sustainability.
The committee approved an amendment that bans the City from investing in instruments with high carbon dioxide emissions. Effectively, this policy will divert from the use of fossil fuel assets and companies, and will now favour cleaner investments.
“On 27 July 2017, Council resolved that the Climate Change Policy be adopted and that policies be amended to support this initiative,” said the Cape Town Mayor, Patricia De Lille. “In keeping with legislative and operational requirements, the investment committee has the responsibility to ensure that the City’s Cash Management and Investment Policy is compliant with latest statutes and operational developments.”
The policy in question is a working document, and needs to be constantly reviewed and updated. The last update of the policy was made in October of 2015.
“The policy has now been amended to incorporate the recommendation from the City’s Climate Change Policy,” she said.
The policy states that steps must be taken to sustainably manage the City’s investments and to divert from direct investments in instruments which consist of assets and activities whose value is realised through the release of unmitigated high levels of carbon dioxide.