County treasurer's draft ethical investment policy excludes seven industries

Draft policy excludes county investment in guns, oil, jails, gambling, tobacco, and defense industries. Opposition to draft policy is already emerging

Alameda County Treasurer-Tax Collector Henry Levy at a Board of Supervisors meeting in December 2024.

☕️MORNING BUZZ

—Last fall, Alameda County Treasurer-Tax Collector Henry Levy disclosed that he sold $32 million in bonds for the Caterpillar Corporation because of the company’s ties to the Israeli occupation of Gaza.

It was within Levy’s right as county treasurer to unilaterally sell the bonds, but he told the Alameda County Board of Supervisors in December that an “ethical investment policy” should be created.

“In my opinion, today’s discussion should be about better investment policy, not about divestment,” Levy said in December. “However, it is on the table. So, let’s get it out.”

Earlier this year, Levy, who is Jewish, made it clear that his decision to divest from Caterpillar was due to its involvement in Gaza. The admission could attract the attention of those who oppose the Boycott, Divest, Sanctions (BDS) movement against Israel..

On his own, Alameda County treasurer divested from Caterpillar, a symbol of trauma for Palestinians

A draft ethical investment policy is coming to the Alameda County Treasury Oversight Committee on May 6.

“Alameda County will not invest in companies that consistently, knowingly and directly facilitate and enable severe violations of human rights, as outlined in international law,” according to the draft language.

The draft policy discourages investments in companies that derive more than 10 percent of their total revenues from seven general industries listed below:

• Oil and gas, coal operations

• Firearms

• Tobacco

• Casinos and gaming

• Security and correctional facilities

• Alcoholic beverages, including distillers and vintners

• Defense industries

Companies that violate the rights of workers in the textile and apparel industry, electronic and agriculture will also be excluded from county investment.

The treasurer will determine whether a company fits into one of the prohibited categories on a case-by-case basis, according to the draft statement, and requires approval by the Board of Supervisors if justification for prohibiting investment in a company is found.

—More inside:

• A recall leader and taxpayers group has already registered opposition to draft ethical investment policy with the Board of Supervisors.

• Oakland’s special election still isn’t official as Lee and Wang wait to be sworn in.

• Updated Oakland special election results.

• A state senate bill that would prohibit cities from fining and arresting the unhoused is moving through the legislative process.

—411 ON THE 510—Become an East Bay Insiders subscriber today and get FULL ACCESS to the inside scoop every weekday morning at 6 a.m. It’s what the insiders read.