Click HERE to sign our petition to divest Gainesville's public funds from the fossil fuel, private prison, and arms manufacturing industries
Inspired by the Native-led resurgence of the divestment movement across the nation, we are a collective of residents of Gainesville advocating for the divestment of all City of Gainesville financial assets from fossil fuels, petroleum pipelines, private prisons, arms manufacturing, and in particular organizations which directly or indirectly finance and fund such operations.
The mission of Divest Gainesville is two-fold: 1) build public awareness of the intersection of racial justice and climate change issues, and 2) to make real, on-the-ground change, beginning here in our very own city by passing a socially responsible investment ordinance to discourage support for fossil fuel pipelines, private prisons, arms manufacturing, and violations of indigenous sovereignty.
Specifically, we aim to do the following:
Pass a socially responsible investment ordinance prioritizing vendors in the Request for Proposal process who do not fund or otherwise support fossil fuel pipelines, support private prisons, or arms manufacturing, or who violate indigenous sovereignty.
Provide SunTrust Bank, with whom Gainesville currently contracts to hold its operating funds, with notice of Gainesville's intention not to renew its contract in 2022.
Ask Gainesville's investment advisor to conduct a thorough review of its holdings for fossil fuel, arms manufacturing, and private prison-related stocks.
City Operating Funds with SunTrust Bank
The City of Gainesville has approximately $12 million in banking services with SunTrust Bank for the term of October 2017-2022.
SunTrust has invested $435 million dollars in companies that built the Dakota Access Pipelin in violation of Indigenous sovereignty and nation-to-nation treaties and threatening the waters, lands, sacred sites and burial grounds of Indigenous Nations.,
SunTrust has invested $105 million in companies building the Sabal Trail Pipeline, which threatens to contaminate our water supply, and to disproportionately affect the 80% poor and minority residents along the project’s route with threats of explosions and dangerous emissions.,
SunTrust profits from and enables the expansion of private prison and immigrant detention center by financing the debt of the Geo Group and CoreCivic (formerly Corrections Corporation of America-CCA), two of the largest private prison companies in the world.
SunTrust has extended to CCA a $65 million dollar loan and a $132.5 million line of revolving credit, and is part of the syndicate of banks that has extended a $444 million dollar loan and a $900 million line of revolving credit to GEO Group.
In 2013, HUD charged SunTrust with discriminatory lendin and violations of the Fair Housing Act for allegedly denying mortgages to women on maternity leave.
In 2012, SunTrust paid $21 million to the Justice Department to settle discriminatory lending claims and violations of the Fair Housing Act for allegedly discriminating against African-American and Hispanic homeowners.
General Employee Pension Funds
The city’s general employee pension fund contains approximately $355 million in investments. Because the 2016 performance report references benchmarks for each investment manager, and not the actual stocks included in each fund, we can only speculate as to the contents of those funds. We do know that one fund, managed by Harvest Fund Advisors and whose benchmark is Alerian, consists entirely of Master-Limited Partnerships that are energy (and most predominantly) fossil-fuel based. The remaining benchmarks vary in content of fossil-fuel stocks at a rate of 0.83 to 20.47%, and at least one of the benchmarks has 0.26% of its funds in CoreCivic or Geo Group, the largest private prison developers. That said, the city reports that there are currently no stocks in private prison industries.
More precise information is needed as to the precise stocks selected by each investment manager, but the benchmarks give us an idea that, indeed, a significant portion of Gainesville’s General Employee Pension Funds are in the fossil fuel industry.
Because Divest Gainesville added the criteria of divestment from arms manufacturing after our January 11th, 2018 meeting with city staff, we do not know currently what amount of city employee pensions may be invested in arms manufacturing.
City Employee Purchasing (“P”) Cards
The city currently does approximately $8 million in business with Bank of America through city employee purchasing (“P”) cards. Bank of America has similar ties to the fossil fuel and private prison industry as SunTrust. Divest Gainesville would like to see the P cards replaced with a socially responsible credit card company, of which there are many.
Our Specific Requests
The City of Gainesville create a city ordinance establishing criteria for a minimum social responsibility score to be used in the City of Gainesville’s RFP process for all vendors, including
The city’s operating funds
The city’s excess funds
The city’s general employee pension fund investment managers.
The city employees’ purchasing cards
The City of Gainesville create an ordinance whose social responsibility criteria would include, at a minimum, non-investment and non-provision of loans, credit, bonds or similar debt instruments, or underwriting services to:
Entities organized to carry out the construction of fossil fuel pipelines
Entities organized to carry out construction of private prisons
Entities that violate indigenous sovereignty, as defined by the standards set out in the International Finance Corporation's Environmental and Social Sustainability Performance Standard 7; Articles 11, 12, and 25 of the United Nations Declaration on the Rights of Indigenous People; Indigenous People's right to free, prior, and informed consent; and the treaties of the United States.
Entitites organized to manufacture weapons
The City of Gainesville provide SunTrust with advance notice of the City’s intention not to renew its contract for bank depository services for any of the allowable five one-year extensions beyond its current 2017-2022 term.
The City of Gainesville ask its investment advisor to conduct a thorough review of its holdings for fossil fuels, arms manufacturing, and private prison-related stocks. We also recommend that the City look at the risk of these investments and also compare on a risk-adjusted basis similar investments that are free of these industries. Many other esteemed investors such as New York Common and Harvard Endowment have decided, for instance, to remove fossil fuels from their portfolios.