Expressed interest and are considering participating and then we certainly have, you know, many managers who are engaging with Portfolio Companies around climate risk but perhaps not formally through that initiative. Okay. And then my other concern is, we talked about diversity and i like what youve done in terms of the work around that. Do we use that same [indiscernible] in terms of rps and other things, do we really apply the sfers criteria for the type of diversity were looking for across the board, including [indiscernible] and other sectors . I cant fully comment on that. I guess what i can say is, you know, there is proposition 209 in place in california i know. Thats why i i know. Up to a vote, thats in november. But we do not i want to make clear that we do not ask about diversity characteristics when we send out an rfp or enter a new relationship or a new contract with an external party. Were wanting to be not running afoul of distortion . The board is engaging, we do request form 1 information which basically gives demographic as well as gender and racial diversity within an organization, which is part of the consideration. Certainly weve never again, [indiscernible] cant target it but as we send out an rfp for consultants, we would request that information. We would certainly consider it. A managers Selection Process is obviously a different process. Right, exactly. And then my last question is on part of the oil and gas piece, and i want to check if fracking is part of that piece because i dont see that in there, if they address fracking as part of oil and gas. We do not specifically differentiate between the type of Extraction Technology that a firm is using. So within our portfolio, you know, we have exposure to companies with all types of resources, and many of those, particularly in north america, right, are fracking. And they usually disclose it in lots of cases. Thats why yes. Any other questions for andrew . Andrew, bill, ill turn it back to you. But, andrew, thank you. That was very comprehensive. And i do agree with carmen, there should be a way that others should know about the work that were doing around esg because i think its important because its one of the issues that come up at the board of supervisors and other places what sfers is doing on esg. So we have to figure out a way to get some of the messaging out so theyll know because i think youve done a lot of work to really make sfers in the top tier when it comes to esg and the types of services [indiscernible]. We could certainly highlight it in our annual report. We have an investment [indiscernible] but certainly for the public consumption we could ask andrew to basically update us on all of the activities that were done during the year and include that very specifically as a section of our annual report and that at least would be a start. Weve issued press releases, and press releases are out there. But i think if someone really wants to recommend that they look at what were doing, maybe the annual report, which should be available online, would be the best place to sort of highlight our activities. Before we go to the next item, i want to comment about compensation. Its of special interest to me in the esg suite. I think that is the s part is underappreciated. I do think that capitalism and connecting capital and finance needs to work both profitably for institutionals while also delivering Better Outcomes for people and also that theres work to do and work that should be done at the executive level, better recognizing and rewarding the value of work both on an absolute level, each and every individual, and also in relation to one another. I concur with you, bill, on that. Thats a conversation you and i have had many times. Thats why i like the focus on whats going on with the Investment Team on esg and thats why i asked the question as well, [indiscernible] to do something differently to address the s in the esg. If there are no other board questions or comments, lets move on to the next item. Open for Public Comment, right . Yes. If you have not already done so, please press star 3 to be added to the queue. inaudible . Moderator, are there any callers on the line . Madam secretary, there are [indiscernible]. Thank you. caller hi, thank you. You sounded almost inaudible, so if everyone who is not speaking could mute their lines, i think that would probably help. My name is judd. Im a senior [indiscernible] San Francisco and sent over five years working with board and staff on making their level of knowledge on climate risk and bringing in experts and data to that effect. I want to thank andrew for all of this work. This is truly night and day from the total inaction from this agency before you brought him on board and it is a truly great body of work by any measure. I also desperately wish this body of work had been kicked off in 2013 or 14 when reams of data and multiple experts were brought to you all. The level of action on this is not remotely commensurate with the climate emergency. Your posture is divorced from science on the carbon budget. It seems like me like 22yearolds crowding into bars without masks because they know on balance its other people theyre going to injure and kill and not themselves. Im very glad to hear in this report that staff Began Development of a Climate Action plan to work holistically. I would argue its quite belated and also quite urgent and would love to hear from staff about the time line for its release and presentation to the public. To the board, if this only includes public equities, it will not be a real plan. Esg for your public equity and anything goes for your private investments is not separate but equal and its not a good base for a esg inaudible . What if the city and county were foremost in the country and only incarcerating 45 of individuals experiencing homelessness within a year. Even an elected official would not have that attitude. You would be focused on the real world and what the actual policy outcome is, not in relation to other cities. To that end we need not to see whether were doing better than caller this is jack. Im a retiree. I appreciate andrews report. And i have to say, when i first heard that the portfolio would be net zero by 2050, i thought, well, thats kind of a joke because fossil fuels will be worthless by then. The state has already committed to being Carbon Neutral by 2045. But i think i came to understand that this is not just talking about getting kid of fossil fuels, youre talking about Climate Action 100 and all of the companies and their Carbon Footprint. So that is really good. Im really happy to hear that youre doing that. Companies like general motors, caterpillar, all of these Companies Using fuels. We need to get rid of it. Thats a great use of our esg resources. Im not going to be able to stay for the report thats coming up later, but i do have to call your attention to page 12 of the climate risk memo which points out that in the last ten years, the index has gone up by about 90 whereas the energy funds have gone down by about 30 . So its no wonder that theres only 108 million left of the publicly traded funds. But i would also urge you to look well, also the current divestment, 406,000 out of that 108 million, its less than 1 per year. Thats like a 100year divestment plan. Thats way too slow. You have to move that up a whole lot faster. Id like you to take a look at the real assets update that came out in july it has a lot of energy funds in there too. The Climate Transition risk that you talk about is to understand and manage risk. Okay. Understanding it is very simple. Science says Climate Change is caused by fossil fuels and we have to thats easy. Manage risk. Very simple. Get out of fossil fuels. So dont think its so complicated. Youve made this way too complex. Just get out of fossil fuels. And i do support all youre doing to make sure that we have a Net Zero Company benchmarks. Thanks a lot. Next caller, please. caller this is david paige. Thank you. I have spoken before and i know the oldtimers remember me and my message isnt really any different than in years past. I want to endorse what the previous callers have said. Im no fan of engagement. However, if the meat Packing Companies have improved their worker safety because of any engagement that andrew was talking about, then thats great. And i also want to say thank you to andrew and all of you that are listening. I know you guys work hard and you do good stuff and youre trying to do the best you can. Commissioner chu mentioned something really important, which is the universe of people in finance and investment isnt necessarily the same universe as the people in science and Public Health. In terms of divesting, as a retiree, you know, i just dont feel morally comfortable with any part of my money going into private prisons, for example. But i appreciate how you guys have divested from tobacco and firearms. So im hoping that youre going to, you know, do something radically different than in years past and make a giant change in what youve been doing. Heres what im proposing the retirees like myself have been somewhat supportive of the idea that if you if its not against the law and you can make money at it, then lets invest in that. You know, regardless of the esg. Regardless of how equitable a player, a company we have to do business with. Well, why dont we send out a message like someone was talking about earlier, not in the annual report or in press releases but with the deposit advice that i get every month. A Simple Survey saying, you know, andrew could put together something from the report of Amnesty International or Human Rights Watch that is time. [indiscernible]. Madam secretary, no more callers on the line. Thank you. Hearing no further calls, this item is now closed. Action item 9. I would like to make one compliment and i didnt get my microphone on fast enough. distortion . The Prime Minister of china, mr. Xi. Very similar to the aspirations document that was recommended that the board adopted or recognize a couple of months ago about this whole useful area about esg and climate improvement. Just a coincidence i believe is worth noticing. Thank you. distortion . Item number 8 action item. Rea reading item . Thank you, president bridges. Board members, this is the first of five action numbers on esgrelated matters, an update on our esg policy [indiscernible]. Ill keep my Public Comments relatively brief for this item. Divested from u. S. Tobacco Companies Since 1998, just when the companies were entering the master Settlement Agreement with the states attorneysgeneral. Weve updated the list weve recommended for divestment. In terms of whats happened over the past year, i think weve seen continuing tightening of restrictions on electronic nicotine Delivery Systems or vaping products or ecigarettes. Actually sales of ecigarettes have fallen over the year, about 14 , which is more than the decline of traditional cigarettes category. Theres actually a decline in traditional cigarettes, its much less than predicted probably due to some shortterm issues like stockpiling during the covid pandemic. I think from a regulatory perspective, you know, fda or fda and cdc are moving forward with relabeling requirements. The ecigarette regulations continue to be implemented and approval processes, you know, going through. One of the biggest names, j uhujuul the struggling natuf that category. In terms of updates to our list, theyre really pretty minor. Theyre described on page 2 of the staff memo. Were recommending adding one new ecigarette company thats pretty lightly traded and we dont hold a position in that company and updating the name of another company and then removing three Companies Since theyve been listed over the past year. Like for all of the following members in the appendix we have a list that includes companies reflecting updates in the nothing significant in the overall summary. Commissioners, are there any questions for andrew on this, recommendations on this action item . If not, then ill entertain a motion if there are no questions for andrew. [indiscernible]. A second . Second. Moved by commissioner driscoll and seconded by commissioner chu that we adopt the recommendation to [indiscernible] current policy will [indiscernible] approve a list of restricted companies as outlined in appendix [indiscernible] of the memorandum. Madam secretary, Public Comments, please . Please press star 3 to be added to the queue. For those already on hold, continue to wait until the system indicates [indiscernible]. Are there any callers on the line . Madam secretary, there are [indiscernible]. Thank you. Hearing there are no calls, Public Comment has now closed. Thank you, madam secretary. [indiscernible] roll call then, please. [roll call] [indiscernible] if hes present, he needs to vote. If kevin [indiscernible]. Next item, please. Item number 9 action item targeted divestment in sudan, level iii of sfers esg investment policy. Board members, this is an update on the boards policy by targeted divestment in sudan. Relatively speaking, the experience for the human condition [indiscernible] continues to occur and andrew will provide further context. Andrew . Thank you, bill. We initially divested from Companies Operating in sudan in 2006 at the height of the genocide in darfur. Over the last, you know, 15 years or so, theres really been progress its slow progress but a march towards peace and stability in the country, and that has really culminated in some changing political stances, particularly from the u. S. , towards sudan. President obama and then following through President Trump had loosened sanctions placed on sudan. By and large, there still remain, you know, some select sanctionsanctions and sudanese individuals on our state terrorism watchlist. But by and large the major sanctions have been lifted. Last year the former president who was in power during the genocide and there was a coup. There was a Sovereignty Council which includes some civilians and military leaders on the pathway towards 2022 and they will democratically elect a president. So if you recall in february, we adopted revised criteria for the way that we see and look at Companies Operating in sudan, where we said that given the forward progress in the country, that were comfortable remaining invested in certain companies, those that provide things Like Health Care equipment, telecommunication services, power equipment, other goods and services that citizens need and can actually help contribute to positive development and stabilization, in a way that would be beneficial to citizens. We continue to not invest in companies that provide military equipment or those that were deemed to be complicit in the genocide that occurred in the darfur region. What we do with the remaining set of companies and theres, you know, a large amount of work that adrian was really central in helping with here. In our report is we screened them against their esg Management Practices and want to really get some comfort that the companies that weve identified that have operations in sudan are mitigating and managing their esg risks there. If we dont get comfort with that, then we may recommend them for investment restriction. The next thing were really looking for in sudan is the removal of sudan as a designated state sponsor of terrorism by the u. S. Government, and thats the big next step for the country, which is preventing them from receiving meaningful foreign aid and foreign investment. This is something thats actually in place, not due to the darfur genocide but related to the 2000 bombing of the uss cole by alqaeda and then bombings at u. S. Embassies in kenya and tanzania by alqaeda and that [indiscernible] by the u. S. Government that sudan was complicit in those, the country did harbour Osama Bin Laden for a period of time. So that part is actually proceeding. Theres been one settlement reached for the uss cole bombing. Progress has been made towards the other financial settlements. Secretary of state pompeo was in sudan in august trying to negotiate those and it seems hopeful that that will move forward. So thats the state of play. Its also worth mentioning that [indiscernible] has been brought before the International Criminal court in the hague where hes facing charges of crimes against humanity and this is seen as an important step in helping to get justice for the citizens of the country so important that that is also moving forward. We recommend adding three companies to our restricted list here. One is the company petronas that was involved in directly financing militias in south sudan. Its important that theres comfort that esg controls are in place around their Corporate Activities and where proceeds from their Energy Projects are going. And then two other Companies Due to lack of any disclosure or transparency, Risk Management didnt feel comfortable that we could get a sense of firmly not putting them on the list. [indiscernible] pages 7 to 9 of the memo and again the list proposes for adoption a list of changes are in the two appendices in that report. Ill pause there. Im happy to answer any questions on this update. Commissioners, any questions of andrew on trying to get divestment in sudan, level iii . Action item. Ill entertain a motion. I move adoption of the report. Second . Its been moved