Orange County NC Website
Resolution in Support of Divestment from Fossil Fuel Companies <br /> <br />WHEREAS the climate crisis, induced by the fossil fuel industry, is a severe threat to current and <br />future generations. The Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report <br />found that anthropogenic global warming promoted heat waves, droughts, floods, cyclones, and <br />wildfires that altered ecosystems, disrupted food production and water supplies, damaged infrastructure <br />and settlements, and increased morbidity and mortality; and <br />WHEREAS in order to mitigate the climate crisis a relentless drive to improve energy efficiency is <br />causing global energy consumption overall to decelerate and shift to renewable energy. Global <br />renewable electricity capacity is forecast to expand by 43% by 2022. <br /> <br />WHEREAS, “Measuring fossil fuel costs”, a 2015 study by University of Cambridge Judge Business <br />School, reported on 20 fossil fuel companies and found that, while highly profitable, the externalized <br />economic cost to society was also large. The report spans the period 2008–2012 and notes that: "for all <br />companies and all years, the economic cost to society of their CO2 emissions was greater than their <br />after‐tax profit, with the single exception of ExxonMobil in 2008; and <br />WHEREAS after assessing the degree of externalized, climate-change costs by the fossil fuel industry <br />and the proportion of those costs covered by the insurance industry, the president of the Reinsurance <br />Association of America stated, “it is clear that global warming could bankrupt the industry”; and <br /> <br />WHEREAS a 2013 study by HSBC, one of the largest banking and financial services institutions in <br />the world, found that between 40% and 60% of the market value of BP, Royal Dutch Shell and other <br />European fossil fuel companies could be wiped out because of stranded assets caused by carbon <br />emission regulation; and <br />WHEREAS, scientists can now determine to what extent climate change made a particular event such <br />as a hurricane, wildfires, or drought more likely or more extreme. This advance in attributing climate <br />change to specific actors enhances the potential for successful of damage suites against fossil fuel <br />companies; and <br />WHEREAS, the value of stock in fossil fuel companies is severely jeopardized by improved energy <br />efficiency, transition to renewable energy sources, the magnitude of externalized costs, the potential for <br />stranded assets, and the increasing likelihood of large payouts for legal damages; and <br />WHEREAS, after two years of studying these and other deleterious factors and in fulfillment of their <br />fiduciary responsibility, Mayor Bill de Blasio, Comptroller Scott M. Stringer and other trustees of the <br />City’s $189 Billion pension funds have announced a goal to divest New York City funds from fossil <br />fuel reserve owners within five years; and <br />WHEREAS, the North Carolina State Treasurer, as the fiduciary of over 20 funds worth about 100 <br />billion dollars, invests these funds for the benefit of residents of North Carolina; and <br />WHEREAS, the North Carolina State Treasurer's fiduciary responsibility, in accordance with NC <br />General Statutes § 36E-3, requires consideration of expected total return from income and the <br />appreciation of investments and to preserve capital; and <br /> <br />WHEREAS, investments in fossil fuel companies are incompatible with the NC State Treasurer's <br />fiduciary responsibility to the citizens of North Carolina. <br />