Town of East Fremantle to review fossil fuel-free investments
East Fremantle Town will review its fossil fuel-free investment policy after concerns grew that it would take its foot off the gas.
The town changed its surplus funds investment policy in 2016 following petitions from residents to opt for competitive quotes from financial institutions deemed not to invest in or finance the fossil fuel industry.
This is also part of the Climate Emergency Action Plan 2023-2033.
The policy review was presented at the council’s Dec. 9 meeting and was unanimously approved.
But Cr Cliff Collinson said the town’s percentage of investment from institutions interested in fossil fuel-free investments had fallen to zero.
“If it were in the community, I think a lot of community members, especially those who campaigned strongly to get this policy in place, would be very disappointed to know that it actually went to zero,” he said.
“I noticed other councils were investing in places like Bendigo Bank or places that didn’t suit our needs.
“Do you have any ideas on how we could change our policy a little bit to allow for not such strict requirements?”
Peter Kocian, senior manager of corporate services, said there is no need to change the policy because it already allows the town to dispose of its funds.
He said staff would investigate investments with Bendigo Bank and Adelaide Bank as fossil fuel exposure appeared low compared with the major banks.
Currently the town invests primarily with the Commonwealth Bank, Westpac and National Australia Bank.
“Very few institutions currently offer dedicated green certified term deposits, some of the reasons being that products must meet international standards such as the Climate Bond Standard and Green Bond Principles to prevent ‘greenwashing,’” Mr. Kocian said.
“Banks must assess climate risks in their portfolios and ensure deposits fund truly sustainable projects.”
Changes to the policy include an annual review of the availability of fossil fuel-free investment products.
The town’s monthly financial report for November stated that $5.9 million was invested in the Commonwealth Bank and $3.5 million in NAB.
Later at the meeting, Cr Collinson also questioned the status of converting the town’s fleet to electric vehicles.
“Uptake has been very, very slow so far,” he said.
CEO Jonathan Throssell said the town is still moving in that direction, but it depends on availability, cost and the town’s ability to support electric vehicles.
“There is an article in the council plan that investigates the transition of our entire fleet and factory to electric vehicles,” he said.
Mr Throssell said the town did not have a large fleet of light vehicles, with just one car and a few “a few cars” in storage.
