(August 12, 2013) — A group of Californian senators will today urge their state’s largest public pension funds to make no further investments in Russia, in protest at the country’s latest anti-gay laws.
Senator Mark Leno, Senate President pro Tem Darrell Steinberg, Senator Ricardo Lara, and bill sponsor Equality California, will introduce a resolution today, according to a statement on Leno’s website.
“The anti-gay laws recently passed in Russia are an unconscionable affront to Lesbian/Gay/Bi/Transgender (LGBT) people across the world, not just those who live in that country,” said Leno (D-San Francisco). “Californians cannot silently sit back and tacitly condone these practices by continuing to invest in and support Russian enterprises. The California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS) are well placed to use their economic clout to make a strong statement that it’s unacceptable to persecute and discriminate against individuals based on their sexual orientation or gender identity.”
The combined investment might of the two pension funds is around $431 billion.
The resolution follows laws passed by the Russian parliament at the end of June which threaten arrest, detainment, and imprisonment for up to 15 days for individuals or groups found to be publicly supportive of LGBT equality, Leno said.
Punishable offenses could include public acknowledgment of one’s orientation, displays of affection between same-sex partners, statements in support of LGBT rights, and the use of symbols such as rainbows that are attributed to the LGBT community. Leno’s statement said that hate crimes and public persecution of gays had increased in the months following the enactment of these measures.
At the end of June, the US Supreme Court refused to stop California from issuing same-sex marriage licenses, throwing out an emergency request from supporters of Proposition 8, the voter-approved measure that had earlier been dismissed, which attempted to outlaw the practice.
“California does not tolerate discrimination and we certainly shouldn’t invest in it,” said John O’Connor, Equality California’s executive director. “By urging the state’s two largest pension plans to cease Russian investments, we are taking a stand for equality. Our investments should align with our values and never reward discrimination against individuals based on their sexual orientation or gender identity.”
“In today’s global economy, pension funds can meet their fiduciary responsibilities in a variety of ways, without investing in countries that violate basic human rights,” stated Leno.
Both pension funds have strict corporate governance guidelines around their investments, but neither highlight such a matter as raised by Leno.
CalPERS and CalSTRS had not responded to requests for comment made by aiCIO from London this morning.
The resolution will be heard in the Senate prior to the conclusion of legislative session in September.
For more information on the resolution, click here.
Update (6:00 p.m. EDT): A CalPERS spokesperson has provided aiCIO with the following statement:
“CalPERS is a strong defender of human and civil rights across the globe. CalPERS always strives to be a responsible investor as we uphold our fiduciary duty to our members and their retirement security. CalPERS will continue its prudent review of all investments and will consider current developments as it abides by all applicable laws.”
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