By Anne Bordonaro
In keeping with a long tradition of land stewardship, Vermonters have spoken loudly in recent years in favor of ridding ourselves of reliance on fossil fuels and in favor of practices to improve our health and the health of our beautiful land. For example, we have passed laws banning gas fracking and in favor of labeling of genetically modified foods and use of alternative energy sources. We provide substantial taxpayer funds to support Efficiency Vermont, Lake Champlain cleanup, electric vehicle incentives and land conservation. We recognize that the health of Vermonters and the viability of our state’s tourism and agricultural industries depend on protection of our environment and addressing climate change. Though there are ongoing conflicts over the siting of particular solar and wind energy projects, almost no one suggests that the answer is to return to reliance on coal, oil and other fossil fuels.
Yet, our state’s investment and banking practices contradict this consensus. Vermont’s state employee pension funds remain invested in many fossil fuel companies. Vermont’s official banking contract is held by TD Bank, a bank that is a major funder of nonrenewable projects such as the Dakota Access Pipeline. In addition to the broader problem of construction of continued fossil fuel infrastructure, the company behind that project, Energy Transfer Partners, is belligerently refusing to consider rerouting a small section of the Dakota Access Pipeline to avoid damaging sacred Native lands and water sources.
I call on treasurer Beth Pearce to bring Vermont’s pension fund investments and banking contracts in line with Vermonters’ priorities. The incoming Legislature and governor should also speak loudly in favor of these priorities. It is illogical to ban fracked gas yet invest funds in companies that build pipelines to transport such gas. It is illogical to invest substantial state funds in encouraging businesses and homeowners to adopt energy efficiencies yet award a lucrative contract for state banking services to a bank that is funding retrograde fossil fuel projects. Vermont’s state banking contract is up for renewal. This is the perfect time to outline responsible investment practices as one of the specifications in the Request for Proposals for banking services. The lowest bid is not always the best investment if it means compromising our values and health.
I am a veteran of the South African divestment struggle. The same arguments were raised then as Pearce and others are raising now: “Investment decisions must not be political. My first responsibility is to the fund holders. Legislators must not determine financial decisions.” These are ruses. Divestment of funds from companies doing business in South Africa did not financially harm investors. There are plenty of other lucrative and viable investments.
And investments are political, whether we acknowledge it or not. And no one is calling for legislators to make investment decisions with the people’s money. It is not a routine matter to call for divestment. There has been no serious divestment campaign in the U.S. since the 1980s. But if there ever was a time for one, it is now.
As Bernie Sanders said, in the face of the magnitude of the problem we face from climate change, “We will not go silently into the night.” Incoming Vermont legislators, Governor Phil Scott and treasurer Beth Pearce, I call on you to bring the state’s financial and investment decisions in line with Vermonters’ priorities to protect our environment and health through reducing our reliance on fossil fuels.
Bordonaro lives in Waitsfield.
