ECHO, 28 February 2024:
Byron Shire Council investments in fossil fuel projects as of Jan 2024 PIC Byron Shire Council
Byron Shire Council investments in projects linked to fossil fuel production decreased significantly after the NSW Treasury Corporation (TCorp) relaxed rules last year.
Investment reports included in last week’s agenda for the council’s ordinary monthly meeting showed the council had 56% of its investment funds lodged with fossil fuel aligned projects by the end of January 2024.
The figure was a decrease compared to 71% at the end of December 2023 and 85% at the end of the 2022-2023 financial year.
Staff credited the removal of a state covenant requiring local governments to invest TCorp loans mostly in institutions with A+ credit ratings or stronger.
Institutions offering investments in the ‘ethical’ area still mainly had lower credit ratings of BBB, or weren’t rated at all, staff said, citing credit unions as an example.
Staff noted the council’s diversified approach to investment was aimed at achieving short, medium, and long-term results.
Investment was regulated by TCorp, which until late last year effectively forced NSW local governments to bank at least a quarter of their low interest TCorp loans in A rated institutions or higher.
The council wasn’t allowed at the time to invest any more than 40% of the loans in A- rated institutions, 30% in BBB+ rated institutions and 5% in institutions rated BBB- and below.
Credit ratings allowed ranged from BBB- and below, or not rated, to AAA, with councils also encouraged to invest in TCorp itself.
End of financial year 2022-2023 figures from the council showed of nearly $65 million invested at the time, 85% was helping support fossil fuel aligned projects via various bonds, term deposits and other accounts..... [my yellow highlighting]
Read the full article here.
At the end of the 2022-23 financial year Richmond Valley Council had a cash held in banks & investment portfolio of $90.668 million. Of which $48.087 million or 53 per cent of the total was invested with financial institutions which do not invest in or finance the fossil fuel industry.
As of 30 June 2023 Clarence Valley Council investment portfolio stood at $156.357 million.
Of which only $12 million is invested with financial institutions which do not invest in or finance the fossil fuel industry. Representing a paltry 7.67 per cent of council's investments.
At the ordinary monthly meeting of 25 July 2023 all nine councillors voted to simply note Clarence Valley Council's investment position. Which appears to indicate that this local government is not overly interested in living up to rhetoric expressed in the past.
On 30 June 2023 Ballina Shire Council's investment portfolio stood at $104.300 million, of which only $8 million or 7.67 per cent was invested with financial institutions which do not invest in or finance the fossil fuel industry. As councillors there also voted to note the report without comment, there is no indication that council will be increasing its green investments anytime soon.
Tweed Shire Council valued its investment portfolio at $431.958 as at 30 June 2023. None of the investments listed were identified as being invested with financial institutions which do not invest in or finance the fossil fuel industry.
Lismore City Council listed the face value of its investment portfolio as $133.719 million. Council also had approximately $1.9 million held in various bank accounts which were deemed as transactional accounts and are not included in the investment portfolio. Council takes care to note that it holds no funds in fossil free investments or 0 per cent.
Finally, Kyogle Council published its 2022-23 financial statement in December 2023 and did not identify investments as a single line item, so nothing was to be gleaned as to what if any money it had invested with financial institutions which do not invest in or finance the fossil fuel industry.
