Great. Okay. So the citys Energy Program aligns with the states vision and action to help shape the Energy Resources future. The citys Energy Program not only works on Energy Efficiency and renewables like youve heard tonight, but also in collaboration with our colleagues at the sf puc works on renewables and also Energy Storage and zero Emission Vehicles and market transformation. The focus of the majority will be on zero emissions vehicles. My director is sick with the flu so he gave me permission to give you highlights he also wanted know relay to you and would be happy to come back and give you a full update on clean power sf. San francisco is loading on the use of the power grid. Grid is 44 renewable with the goal of getting to 50 renewable by 2020 and 100 renewable by 2030. The department of the environment and energy team also works on developing reach codes or commissioner mcallister called them stretch codes. For example, with renewables we passed a better roof ordinance. Thats considered a reach code. We also in San Francisco in addition to municipal utility and what they contribute we know have clean power sf. Launched in 2016 its serving about 80,000 accounts today and has an enrollment goal of july 2019. Its account holders, utility accounts currently being served by sf puc hydro power system. The next face of the enrollment will happen in july. Our colleagues at the puc have been busy procuring resource to get to the 50 by 2020 goal and so that we can enroll the entire city. When we contract for renewable Energy Resources, that means that were not only looking at how do we supply clean power sf green product but also clean power sf green which is 100 Renewable Energy product. In fact, today the board of superviso supervisors authorized the general manager of the puc to enter with 10 developers and its been an undertaking for our colleagues starting last summer where they issued an rfo to find developers who would be able to build under a certain time line enough Renewable Energy capacity, some with Energy Storage, some without to be able to serve the needs of residents and businesses in San Francisco. Our colleagues will be signing likely five to six contracts in the next month with developers. And enroll the rest of the city between now and 2019. Thats all i have on the clean power sf front. Im sure if have you questions i can do my best to answer them because we work closely with the clean power sf folks. Im going to move on. Its really important for us in San Francisco to look at how vehicles are powered. With our grid being 44 renewable today and the goal of 100 renewable by 2030, vehicles powered by renewableses on the grid are 100 reduction in Greenhouse Gas emissions and pollutants and at the source of electricity generation. This is an Incredible Opportunity for us. Earlier debbie showed where our transportation emission footprint looks like in the scope of the citys overall footprint. I wanted to highlight that for us, transportation has been a really stubborn sector. Transportation emissions have increased slightly from 2012 which see there. Our transportation is 30 of where our gas footprint and we can power or mini systems and when we look at private sector transportation mostly cars and trucks responsible for 90 of emissions theyre key to pollution levels and associated health problems. Before i get into the achievements weve seen in our zero Emission Vehicle work and what the road ahead looks like for us, i want to highlight that San Francisco is first and foremost a transit first city, as debbie said we already achieved our goal two years ahead of schedule and that has shift to a new goal by 2030 mode shift is essential to not only address Greenhouse Gas emissions and to address congestion and safety issues caused by singleoccupancy vehicles. Where are we today . I know this will be hard to see. This is what used to be known as the plugin electric vehicle website now called velos and commissioner hochschild is a member and this is the statewide collaborative with industry and policy makers and nonprofit driving market trans formation of electric vehicles. You can go to velos. Org and lots of information and where the latest vehicle stats on vehicles in california and nationwide are houfd. Housed. It shows in california theres over 360,000 zeroEmission Vehicles on the road which is about half of the nationwide numbers. What this demonstrates for us is theres a real opportunity to reduce Greenhouse Gas emission electric vehicles are take off. We have Auto Industry promises to deliver models with longer ranks at a lower price point. In fact analysts like Morgan Stanley predict evs will be 20 to 50 of the global sales in 2030. In San Francisco what that looks like for us locally, San Francisco bay area according to the National Council on Climate Change is the number one e. V. Market in the u. S. And top five in the world and San Francisco is actually recognized as one of 20ev capitals responsible for 40 of the global e. V. Stock. In San Francisco 6 of new car registrations are electric vehicles and the department of environment in the last five to seven years has worked through grants and other types of funding to deploy charging infrastructure to have education awarene awarene awarene awareness to have more electric vehicle charge available and today we have more than 600 city wide. Its important to highlight when we talk about electric vehicles were not just talking about plugin hybrid but also fuel cell electric vehicles. State of california has invested heavily in hydrogenfuelling network. What you see here is there are 31 hydrogen stations throughout the state of california and therell be 62 station business 2020. Three of which will be located in San Francisco. This is thanks to cec grants, California Energy commission and our work on this particular part is through the u. S. Department of energy grant. All the stations will be at existing shell gas stations throughout the city. And the next thing thats kind of accelerating the electric Vehicle Market that will help San Francisco also achieve its goals are sales bands and how the industry responds to the sales bands. So weve seen band announcements in the e. U. , india, asia and now in california. Earlier this month, Assembly Member ting introduced ab1745 a bill requires new cars registered in the state of california after january 1, 2040 to be zero Emission Vehicles. So california has about 6. 65 electric vehicles per 1,000 people and infrastructure remains a persistent barrier to lar largescale uptake and that makes the topic of zero emissions vehicle interesting in the history of the automobile industry. That has been primarily a transportation issue and as david highlighted, this is really also an energy issue. So we have this intersection now for the first time in history of transportation and energy and figuring out how the two work together. So there are some real barriers to electric vehicles and perceived barriers to lec electric and existing buildings were not built with the end use of powering cars so the Electrical Capacity is not sufficient but to upgrade existing building to serve pouring an electric car is an investment. Its been an uphill battle. We also need to address barriers of charging in multifamily dwellings. What you see is we know and my understanding is you cant actually see whats in the pie chart but what the pie chart says is that we have about 413,000 vehicles registered in the city and county of San Francisco. Thats on top of about another 120 incoming Commuter Cars and another 55,000 medium and heavy duty trucks that operate in the city every day. In total over 6,000 vehicles in the city 600,000 vehicles in the city and county of San Francisco. We know where each of those types of vehicles are parked. Some are garage parking, some are on the street. Some are renting garage space from others. We need to figure out from the perspective of looking at how we serve our multifamily community with charging options. How we deploy charging structure to support their needs and theres General Community awareness. If perceived barriers include cost performance and cultural, theres a lack of awareness and information of electric vehicles. When you look at the map on the right, this shows you where we have the highest concentration of e. V. Registrations in the city. What you see there is that around the city center and south of market, where its greener is where we have the higher e. V. Registration. Where you see lower registrations is actually outwhere out where its easier to install singlefamily homes and theres an opportunity to have outreach and education to visitors and business. Ill highlight a few current efforts the department of the environment is engaged in. To to think about how we address the perceived barriers and real barriers. The first one i want to highlight is to the mayors e. V. Working group to identify policies to grow the market. The primary objective is to ensure electric vehicles are available, affordable and easy to use for all san franciscans. The e. V. Working group is led by the citys Administrators Office and debbie being a cochair and to develop recommendation and solution would first enable to us lead by example by electrifying the fleet and so throughout 2016 and 2017 the e. V. Working group worked with city officials and different stakeholders to craft two new ordinances in response to mayor lees request. Both were signed by mayor lee last year. The first are the municipal fleet ordinance which was sponsored by supervisor katie chang and this called for a flip of the fleet by 2022. So theyre work on implementation and theres a reach code or a stretch code that goes beyond what the state already requires. The e. V. Readiness ordinance and the energy team said, all right, if the main barrier is cost to installing charging infrastructure in existing buildings, how can we tackle that in new truconstruction so were in the in the same situation down the road. It mandates there has to be enough reconstruction and renovations to simultaneously charge 20 of the Parking Spaces with level 2 charging or integrate a managed charging station so 100 of the Parking Spaces can be electrified. Whats next for the Ev Working Group and the pullets are off a bit. I made it on a mack and it doesnt translate to pc, so during the last year, our team also with the Mayors Office conducted an unless of worldwide e. V. Policy and best practices and developed recommendations to inform the city next steps. This includes eight areas of opportunities to make 100 electric mobility a reality. So after presenting these recommendations which included how to increase awareness so that drivers know about the benefits of electric cars, incentives and charging options, to ensure that were maximizing the air quality and cost savings of electric mobility for lowincome and under served populations and communities with a disproportionate burden of fossil air pollution we presented recommendations athen group directed the department of environment to form a subcommittee to then develop a citywide electric mobility strategy that targets private sector transportation. Department of the environment along with puc and fsmta are now cochairing t cochairing the subcommittee and it has the task with inner departmental stakeholders to develop the electric mobility strategy. We hope to have that ready by end of year. So whats next . The Departments Energy team realize on work orders and grants for Energy Efficiency and Energy Storage. Zero Emission Vehicle work and Renewables Work along with building codes, reach codes, everything you can think of that has to go under the energy umbrella. Its funded via grants and work orders. So we are always paying attention to whats coming down the line and we look at that the energy commission, cal trans the bay area air Quality Management and others and well be applying for grants left and right throughout this year. But its a competitive landscape. I just want to let you know. Were also department of the environment, leading coordination with a number of private sector stakeholders interested investing in charging infrastructure in San Francisco. So this includes charging providers like easy go and tesla. Tesla plans to deploy fast chargers to meet their model 3 reservations they have here. Volkswagen and theyre mandate the state of california to invest in charging infrastructure as part of their settlement up San Francisco and throughout the bay area. Were working with them. They hope to deploy 100 new chargers in San Francisco and were working with our colleagues at the port. Weve issued a request for information that should be followed up with an rsp for charging providers who would actually deploy charging infrastructure at some port property for public accessibility specifically a lot of dc fast chargers because that will help serve the needs of the community while we figure out how to get charging infrastructure to existing buildings that dont have the Electrical Capacity necessary. And were doing a lot of education and outreach to increase awareness. Weve done ride and drive events with partners like charge across town and in the fall we had two ride and drive events one during fleet week and one during the International Auto show and they resulted in test drives of electric vehicles. We have another one come up sponsored by the vw Electrify America team as part of their settle amount march 15 at the mall so more information coming about that. Thank you. Commissioner questions commissioners . Commissioner you guys do such great work. Thank you. [applause] commissioner Public Comment . You need to come up. I think we have a number of stakeholders who have worked with the Energy Program. Hi, my name is christine and i really enjoyed this. I have a new shop down in the galleria and i didnt realize how much i didnt know how to buy light bulb. All of a sudden i have to like the retail space and started researching and doing different things. My dad came out. We made big charts how to buy light bulbs and whats illumin. I even have a chart. Its crazy. I went on pg e and found the Energy Watch Program and its just been phenomenal. The Small Business direct install program we had someone come out and do an assessment and make a recommendation. We hold it out in two faces its wonderful and i appreciate it and feel smarter. I didnt realize how challenging it is. As a Small Business the irony is the lights kept going out. I thought i have to do something about this because the bulbs were burning so its a great program. As a Small Business owner in San Francisco i want to say thank you. Really great. Commissioner thank you. Good evening. My name is heather hepner. Over the last three years weve been optimizing the bayren Rebate Program to do Energy Upgrades in lowincome housing in San Francisco. So far weve completed six projects theyve utilized 8,000 in funds and cdc will front the capital and complete the work on a scheduled deadline be recipient of the rebate at the end of the project. Weve done a variety of scopes so far including replacing heating systems, Domestic Water heating systems, insulating in attics and our residents feel like theyre satisfied because were hopefully reducing our energy bills and reducing operating costs which prevents us from raising rents so everybodys happy and thank you for the opportunity. Commissioner thank you. Any name is candace. I work at stop waste, a Public Agency in alameda county. I want to say weve appreciated our collaboration with sfe on Environmental Programs both had programs prior to bayren but whats great about the regional collaboration we had the resources to scale up our best practices and help the rest of the region to catch up in the sector. The Regional Program is also convenient for Property Owners with programs across county borders and its great for pilots to be able to scale up. So one example is we are working on a pilot that helps multifamily Property Owners by advising them on electric vehicle charging. So even though sfe has joined on bayren it has been able to maintain its longstanding relationships with Property Owners. With sfe staff providing direct technical assistance. It brings in a steady stream of completed projects into the program. In years we have not been able to meet our goals or thought we werent going to meet our goals due to fluctuations in the pipe line, sfe has come through on generates project to meet our goals. We really look forward to an ongoing collaboration and innovating programs with sfe. Thank you. Commission commissioner stephenson. Im glad you came back. Commissioner i want to say how amazing everybody on the staff is. It makes me proud to sit on the commission and know were in some small way involved with the amazing stuff involved in the department. I think the speaker who came up and said what is and i spend a lot of time talking to engineers and its broken down in a way thats understandable and i want to commend the work youre doing because it helps humans change their lives day to day. I just wanted to thank my team. There are folks here we have works on our zero Emission Vehicle team and staffers and the energy team is made of about 20 individuals would work really hard and tonight you received a taste of what they work on and while following policy were work to drive market innovation and bring industry and the demand side together to create the market transformation. You asked commissioner mcalicester about that. Commissioner thank you and a great hand to your team. Could everybody stand up who works on the team . I see you guys way in the bag. [applause] commissioner director raphael. Im sorry. Commissioner commissioner, all yours. So really quick i want to echo what everybody else said with the stellar work youre doing and the whole team is doing. I just had one clarification, jessie, is this for you, regarding sustainable trips and the definition. My understanding correct me if im wrong, doesnt it include sharing service. Theres walking and cycling and theres a dialing whether we should include Ridesharing Services and if Ride Sharing Services should be included ib that definition, what that looks like. Does it mean that car needs to have three or more people in it despite how its powered. Does it need to be a zeroemissions vehicle with two people in it. That hasnt been determined yet but thats a conversation starting this year. So my closing piece on that again echoing the great amazing work youre doing but i would love to hear maybe the policy committee down the road, the state of play around that because i know a great deal of the congestion in the city and emissions is due to Ride Services like uber and lyft. I know its not our purview, its the puc but id love to circle back on that. There are 45,000 Transportation Network Company Drivers on city streets and the California Public Utilities Commission has oversight and Regulatory Authority over them. Difficult for San Francisco to mandate certain actions but we also know they are interested in transforming their fleets to zeroemissions vehicles and have pilots that have begun in other cities. Have you mavin the arm that leases vehicles to entrepreneurial drivers on the lyft and uber platform. So theres a whole fleet of chevy volts and bolts on the roads now and theyre also interested in partnering with cities to launch pilots around that. Thank you so much, jessie. Were going to item 8. Approval of 201801coe urging the San Francisco retirement board to divest from fossil fuel companies and filed for the fossil fuel divestment for discussion and action. Commissioner before i turn it over to the commissioners i want to welcome the commissioner from the environment board. Its great to see you. Its a longtime friend and i have such respect for him and his work. This is a very important item for the city and as we said it is sponsored by a tuitioner sponsored item, commissioner ahn and hoyos and following the presentation wed invite speaking by Public Comment and vote on the resolution. You may recall mayor lee had written an article in oped urging the retirement board to divest from fossil fuels and with that commissioner ahn. Commissioner thank you, president bermejo. Ill take a minute to set the broad context for this and then see the floor to my colleague, commissioner hoyos. The resolution calls for divestment full and expeditious. The background is this was original started by supervisor alolos in 2013 which urged the retirement board to divest. And then four years later, the San Francisco board of supervisors realized there was only a limited amount of engagement and the supervisors were critical in pushing forward a second resolution also passed unanimously and a day before he passed away mayor lee passed in favor of divestment and im hoping well be able to understand how fiduciary duty, which no one denies the retirement board has blends with our environmental responsibility. Staff was invite to make a statement. Im happy to see a representative from the retirement board and ill see the floor to commissioner hoyos on her thoughts on the resolution so far. Commissioner thank you, commissioner. Im glad to see commissioner here as well an advocate who has been driving divestment work in exciting ways around the country. Just briefly, as we know San Franciscos a well established climate leader and we were one of the first among the 55 cities across the u. S. Who have commit to 100 clean energy from atlanta to san diego. We know part of being a climate leader means ensuring our investments are aligned with our values and that clearly means abandoning fossil fuel investments an industry knowingly driving Climate Change and jeopardizing Public Health every day especially people of color, children, elderly and an industry that is colluding with the Trump Administration to claw back environment policies. Thats why its essential, commissioner has emphasized and penned in the oped we saw published today, theres a strong fiduciary taste to be made in divest from fossil fuels as theyll become stranded assets. According to an analysis by the worlds leading Stock Market Company which runs global indices used by Pension Funds investors who dumped fossil fuel hold have outperformed those who have invested in clean energy and other investment in general. Its not a strategic proposition from a value perspective. What i want to do in wrapping up my comment is share Public Comment we got today from an actual retiree named Jack Lucero Fleck he said he cant rely out in for his income and wants a livable planet for future generation and theres no conflict in having a stable pension fund and divesting from fossil fuels. Its cost billions as the stock market has nearly doubled and foss foss fossil fuel stocks have stagnate and sent a graph. Hes not here tonight but i was particularly moved as someone who works as part of a program focussed on parents and families he cares about future generations and thats what we do in San Francisco. We care about the vulnerable and people most harmed by fossil fuel investments and need to align our values with our investment decisions. I want to thank you and the department, as always, for standing by us, and thank you commissioner ahn for your longtime leadership on this issue and thankful we can bring this issue before our commission. Commissioner hopefully. At this point with the permission their president , id like to recognize commissioner mapras and see another commissioner in the room and in that order perhaps we can start. Good evening. Commissioners, thank you for inviting me. I am here as a resident of San Francisco not as my official capacity as a commissioner. Im not usually apologizing for people but its disappointing the invitation by the retirement board would not make themselves full lay available to you to answer questions to make the moved informed decision you could. Selectively releasing material, not informing the public, keep tight wrap on material the wrong way to do business. In my own capacity, im here to support what youre doing, to encourage what youre doing and i am an advocate for divesting and advocate predominantly because were note good when it came to investing in this category. In the 10year period we made 3. 8 return when the s p 500 is at 83 . The numbers speak for themselves. Maybe it works for others but im speaking for our track record its not the best track record. I believe we can do our fiduciary duties with investment. Theres hundreds if not thousand of investments we can make and we make decisions every day on which ones well make. We made a conscious decision not to be in the tobacco industry. And we are actually losing more money there. Then we are in the fossil fuel world. We do not see our chief investment officers coming to us and saying lets change our mind on tobacco. Its make money. Its a loser. But yet theyre still defiant fot fossil fuel. My personal believe is one reason theyre denying walking over the magical line is their scorecard. Theyre very concerned about the investments they make and in the investment world all the investments you manage become your road map like your report card. And when you go out to the private sector and ask for a job, they look at how you invested your money, what your decisions were, how prudent you ran your course. So when the time comes and youre asked to get rid of a loser, its not just a decision of a loser, it also has a decision that books on the report card. I believe that fogs their think when it comes to this issue and other issues. As a city i want to share that we are better city when we all participate in multitudes of decisions. Were better if we engage with the environment board. Were better if we engage with the Public Utilities commission. Were better off if we engage with the police department. Were better off if we engage with the Fire Department because we are one city. We are united to make the best place for to us live and im confident that we will do right to all of our retirees as our current employees when it comes to investing their money. And every one of my colleagues take their job very seriously in doing the absolute best job to making money. But i believe we can do it without an investment in fossil fuels. So im here to encourage your participation. I hope you come to tomorrows meeting and present us with your resolution and i will be a strong advocate to pushing this forward tomorrow. Thank you for your time. Commissioner thank you. [applause] good evening, commissioners. Thank you for taking this up. Commission president bermejo. I want to thank commissioners hoyos and ahn on your oped which i thought was beautifully written it made the moral and fiduciary argument and the retirement board and its an important argument that needs to be made at this time. It has been a long day. Ill be brief with my comments. Just a few general observations. Supervisor peskin picked up the torch from supervisor avalos and he picked up from environmental Public Health Indigenous Peoples movement that has only grown from that time. And yet since 2013 and as you know, the commitment the board of supervisors made the policy made has not been followed through with in the least. To put a number on it, the fossil fuels portfolio of the retirement board right now sits at over 500 million, 500,000 million. Since the commitment in 2013 the board of supervisors made to divest we divested 1 million, thats. 2 of the fossil fuels portfolio. Thats the action weve seen from the retirement system and board with respect to those who have fought hard for die investme investment divestment. Weve not seen a fulfillment and the degree of inaction belies the moral and feudishry responsible of the board to dive divest we know big oil is under performing the s p 500. We know theres been consistently negative turns over the past five years. Over 100 million of the Retirement Systems investments in fossil fuels have issued consistently negative returns over three years. We can get rid of those investments today and theres no argument that does not fulfill the Retirement Systems fiduciary obligation to its members. As sea levels rise and climate catastrophes occur with greater consistency there is no excuse for this support. I thank you for taking for take strong position on this and looking at the resolution. The only recommendation i would make on page 5 in the third resolve clause and line 12 where it says the commission on the retirement urge the retirement board of the San Francisco employees retirement system to divest from fossil fuel companies id add beginning with immediate divestment of assets that have issued negative returns for five or more years and full divestment within x number of years. Five years seems reasonable for a window of time for full divestment that allows the staff flexibility to strategically offer changes without signalling the market were having a fire sale and we made that fiveyear commitment in 2013 and its now 2018. Thats giving this body an additional five years. The only reason the time element is important is because in five years if were in the same position, hopefully not, but this resolution asis would still read full and expeditious investment and would not be something we can use that says we made the commitment five years ago and look where we are now. So this will be a tool for us going forward. If it doesnt work tomorrow, i hope it will, but well have this and well have your support and a genuinely appreciate all of that. Thank you very much. [applause] commissioner thank you. Are there any other representatives from our city agency or department who would like to comment . Okay. Well start with curtis woo for Public Comment. Im sorry, mr. Woo. Just a moment. Clarification. Request to the clerk, could you collect the language proposed . Thank you. Commissioner i think thats what hes doing. Thank you, commissioners. I look forward to your vote. I hope this is a unanimous vote. The urgency is now. It calls we do as much as we can in our capability so save our plan et and its a winwin. Its politically the right thing as well. I think history will look back at this moment and what a pivotal time. As much as i hate the Trump Administration, whenever theres a great crisis theres a great opportunity and we have an opportunity here as a city and this commission to take a stand and say were not going to let the fossil fuel industry continue to poison our planet. And also the tax subsidies. We subsidize i think 5 trillion globally. The industry would be broke if it wasnt for our taxpayer money doing this. If i dumped a barrel of oil in the bay id get find and put in jail but if an oil company does it they get a bailout so thats another factor. Catholic institutions have vote to divest and banking is a conversation because of what happened at Standing Rock and this is a movement. Lets add to it. I think youll all vote yes because i think im preaching to the choir but divestment is the tactic. We should do the great work and we have to look at the big picture too and divestment is the tactic thats going to solve this. I appreciate it. Thank you. Our next speaker is Joseph Bryant. I want to thank the sponsors and the commissioners and Joseph Bryant the Vice President for San Francisco region 101. We represent over 54,000 workers in california and over 16,000 in San Francisco and many members at the department of the environment. Were here in support in strong support of the resolution our executive board has taken a stance to pass a similar resolution to urge different cities and counties to take this approach towards die investment of fossil fuels and its really unfortunate a number of our members have had to spend so much time to fight this issue and weve ran around in circles literally. Weve organized for every one of the votes we thought would happen and hope will happen tomorrow. We hope the resolution you hopefully pass this evening unanimously will help put pressure on the board and we thank you, president macras for your support. Its been devastating the impacts we see for impacts of Climate Change and not only sit a terrible investment, weve seen the numbers. They come in far under many other options and many members live in communities with impacts from the environment. I myself, born and raised a short distance from the chevron power plant and have seen it on a regular basis. My parents live in bay view with the issues that take place there. Again, we look at it as playing chicken with our existence. The time for action is now. Well be there tomorrow and we hope we can do so standing next to the commission and thank you very much. Commissioner thank you. Im a Community Organizer with the sierra club and im here to ask for your support to urge the board to divest from fossil fuel companies and for us, im sure you know, for us, for me the Greenhouse Gas emissions reduction target we must move away from fossil fuels and to clean energy and with so many environmental rollbacks happening i wanted to take the opportunity to jog your memory on what happens recently in our neighborhood communities. The north bay fires, we all saw firsthand the impact and i work with many frontline communities who have families near Oil Refineries. Were home to five refineries in the bay. And theres hazards from the transporting to refining to the burning of dirty fossil fuels that pollute our air. Not divesting is basically equivalent to supporting the ongoing pollution from the Oil Refineries in our neighboring communities. Im here to urge you for support to align with the mission of the department of the environment which enhances the life of all san franciscans. Thank you. Trillin asset management. Good evening, commissioners. Good evening for having the discussion tonight. I wanted to address the fiduciary duty and the implications of fossil fuel divestment. Im a Charter Financial analyst, charter holder and partner at trillin assess management. We have offices in San Francisco and manage 2. 5 billion. In my day to day job im acutely aware of the challenges of portfolios that meet the fiduciary standard. At the heart is the question of investment returns. To be more precise, can a reasonable person expect a divested portfolio to perform similar or better than a nondivested portfolio if the answer is question the feud yourery standard is fiduciary standard is met. We can analyze the historical record and second thing is model on a forwardlooking basis at the market behavior going forward. Ill touch on both angles. Looking backwards theres been performance thats been poor but theres a Group Another Investment Group did a 25year study and looked at the spear speared period and a divested portfolio would have slightlyimproved performance and no risk in terms of volatility. In depend independently there was another conclusion. Again, two pieces of historical evidence pointing towards divestment honoring the fiduciary duty standard. Ideally youd have a study that looks at fossil fuel divestment conducted by academics and look back further to the historical track record. Thankfully such a study was conducted last year at the university of grogenheim and looked at it before the Great Depression to the great recession. I have the study if anyone wanted to look at it, if you look at the length and the vigor and the methodology, this is hand down the best in terms of look at the issue and the result quote sunday divestment did not reduce riskadjusted returns and these findings can be explain the fact that fossil fuel Company Portfolios do not generate above Market Performance and they provide relatively limited diversified benefits. It goes on to cite three additional studies. When you ask yourself if its consistent with fiduciary duty it points to yes. I dont know if i can have a little more time. Id ask permission for followup questions and well able to extend your time based that way. First of all, do you have extra copies of that . I am able to leave this copy. Wed love to review that. Another thing is i dont know if youre aware of a staff memo talking about as i mentioned earlier, the virtues of oil. Its reassuring to have you as an expert in the room and have your opinion and what you can speak to on time line. What you see as the industrys transition to hopefully a clean economy in the future. Thank you for that question. So i did have a chance to briefly review the staff memo i believe released today. I have two comments, one, not as thorough as the academic study as the method used. There was a fair amount of data within even the staff memo that supported divestment means and the fiduciary standard. I have a copy. I point to page 21. And they looked at oil, gas and coal returns compared to the rest of the market. If you look at a 40 or 43year basis theyre identical returns plus or minus a tenth of the market. With that similar return over such a long time period, youd say a divested portfolio would meet the fiduciary standard. You can look at the same data cite and draw the same con clougs conclusion as drawn by the memo. And the most authoritative piece was released by mercer consulting. They may have delegated assets of 2 billion so theyre a major u. S. Consultants to pensions and did a framework looking at different scenarios in terms of transition and quote their study they said investing in assets clouding fossil fuels on balance literacy suggests there does not seem to be an investment penalty from fossil fuel screens specifically. Again, in my personal opinion id reit reiterate i
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