Draft Revised Investment Policy

We invite the community to provide feedback on the Draft Revised Investment Policy. The Draft Policy outlines Council’s commitment to transition away from fossil-fuel aligned financial institutions towards investments that are socially responsible. The proposed transition brings about three key changes to the existing Investment Policy. These changes are summarised as follows:

1. The inclusion of a Socially Responsible and Non-Fossil Fuel Investments Statement:

When making investment decisions, Council will give preference to green investment options and to institutions that do not invest in or finance the fossil fuel industry.

Socially responsible and non-fossil fuel investment considerations will be part of Council’s overall risk management process to best meet its investment strategy objectives while ensuring compliance with prevailing legislation and this Investment Policy.

This Policy acknowledges the long-term strategy of Council to identify those investments that are socially responsible, benefit the community and progress society toward a more sustainable future.

2. A change in portfolio limits to allow Council to invest more funds with non- fossil fuel aligned institutions such as Suncorp Bank and Bendigo/Adelaide Bank.

The change in portfolio limits is summarised in the table below:

3. Investment Return Yield Tolerance and Break Costs

In order to balance social and economic returns, the following statement in relation to investment return yield tolerance and break costs has been added to the Revised Draft Investment Policy:-

Council will only invest in non-fossil fuel aligned institutions or socially responsible investments where the interest rate offered is comparable (not more than 10 basis points (0.10%) differential) with another available investment product offering at the time.

Council will only incur break fees if the net economic benefit of doing so outweighs the actual break cost.

This consultation will close on Tuesday 7 November 2023