February 28, 2017 - Treasurer José Cisneros' Statement About Divestment From Banks Financing The Dakota Access Pipeline

Contact: Amanda Fried, Treasurer’s Office

(415) 554- 554-0889 (office)



                                               BANKS FINANCING THE DAKOTA ACCESS PIPELINE***


The duty of the Treasurer under California law is to safely manage the short-term investments of the City and

County of San Francisco. As outlined in our Investment Policy, the investments must 1) preserve capital, 2) meet

the daily cash flow demands of the City, and 3) provide a market rate of return while conforming to all state and

local statues governing the investment of public funds.


Once these three primary objectives are satisfied, my staff then uses socially responsible investment goals to

guide decisions about investing in corporate securities and depositary institutions. The screen includes items like

production of firearms, board diversity, predatory lending and global sanctions. When faced with investments of

the same credit quality, term and yield, the investment staff will apply the socially responsible criteria to select

the best option for the City. The results of the socially responsible screen are reviewed monthly. This screen is

the reason why Wells Fargo is not on our list of investments today.


I hear the strong outcry for divestment from institutions financing the Dakota Access Pipeline. First and

foremost, my responsibility is to keep the City’s money safe. I am considering adding financing of the Dakota

Access Pipeline to the socially responsible investment matrix when we do our annual update of the screening

factors in October.