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City of Chicago (City Treasurer's Office)

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Sustainability factors shall be integrated into the City Treasurer’s investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership in order to maximize anticipated financial returns, minimize projected risk, and more effectively execute the office’s fiduciary duty.

Sustainability factors may be analyzed in a variety of ways, including, but not limited to: (1) direct financial impacts and risks; (2) legal, regulatory, and policy impacts and risks; (3) against industry norms, best practices, and competitive drivers; and (4) stakeholder engagement.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

          As a government entity, the investment policy of the City of Chicago is determined by the City's legislative body. Currently, the State of Illinois has passed legislation mandating that all government bodies update their investment policy to require sustainable investment factors. The City of Chicago has updated the Municipal Code. In addition, the City Treasurer has updated the Investment Policy to reflect the State of Illinois mandate. The current integration of sustainable factors into the City's investments is being conducted under the prerogative of the City Treasurer.
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

The Office of the City Treasurer has added the following ESG/RI guidelines to the current Investment Policy. This addition will be published on the Office of the City Treasurer's website and will be available to the public. 

 

SUSTAINABILTY FACTORS

Sustainability factors shall be integrated into the City Treasurer’s investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership in order to maximize anticipated financial returns, minimize projected risk, and more effectively execute the office’s fiduciary duty.

Sustainability factors may include, but are not limited to, the following:

(1) Corporate governance and leadership factors.

(2) Environmental factors that may have an adverse or positive financial impact on investment performance. 

(3) Social capital factors that impact relationships with key outside parties, which may impact investment performance.

(4) Human capital factors that recognize that the workforce is an important asset to delivering long-term value.

(5) Business model and innovation factors that reflect an ability to plan and forecast opportunities and risks, and whether a company can create long-term shareholder value as provided under the Illinois Sustainable Investing Act, 30 ILCS 238/1 et seq.

Sustainability factors may be analyzed in a variety of ways, including, but not limited to: (1) direct financial impacts and risks; (2) legal, regulatory, and policy impacts and risks; (3) against industry norms, best practices, and competitive drivers; and (4) stakeholder engagement.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

6.0 ETHICS AND CONFLICT OF INTEREST

It is the policy of the Office and in compliance with Section 2-156-080 of the Municipal Code that no person acting on behalf of the investment function in the Office shall, in any manner, have any interest, either directly or indirectly, in any investments in which the Office is authorized to invest; or receive in any manner, compensation of any kind, from any investments from the sellers, sponsors or managers of such investments. Investment officers and other staff involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. The City’s Governmental Ethics Ordinance, Chapter 2-156 and State law limit the gifts that employees, officials, their spouses, and /or their minor children can accept from persons who have an interest in city business.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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