District Expands Environmental Responsibility to its Investments
Excerpt from article on ESG Investments by Dan Muelrath, General Manager
On October 26, 2022, the District adopted its Environmental, Social, and Governance (ESG) Investment Policy that guides the actions on how the District invests its reserve funds. The ESG philosophy commits the District to invest in funds that contribute to a sustainable future for the environment, enrich the human experience, while minimizing risks and maximizing transparency of the company. Through the use of readily available ESG screening investment tools, the District established investment criteria and has been shifting all investments to satisfy the new ESG criteria.
While ESG is often used in the context of corporate investing, it has evolved into an important framework for public agency stakeholders (e.g., rate payers, community members, employees, municipal bond investors, rating agencies) as well. For Diablo Water District, the “why bother?” with ESG was simple.
Being uniquely located in the heart of the Sacramento/San Joaquin Delta, the District is on the leading edge of climate change effects. Impacts to the District, its customers, and water supply include changes in salinity, increased flood risk, and increased drought impacts. These impacts have led the District to shift from solely focusing on single and multi-year droughts to addressing the larger issue of climate change.
Although widely recognized as important factors to consider, ESG initiatives can be difficult to implement and measure, and can therefore result in disingenuous efforts. In the era of greenwashing projects to appease political interest, Diablo Water District has taken a refreshing approach regarding ESG policies: to create actionable regulations that will be implemented and have measurable results.
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