The Davis Finance Commission has endorsed a new approach to socially responsible investing (SRI) by recommending a revised subcommittee memo to the City Council. This decision, finalized during a recent meeting, promotes a policy known as Option 2, which aims to align city investments with community values while avoiding complex administrative burdens.
Presenting three options, the subcommittee emphasized that much of the city’s investments are in pooled or state-managed funds, which restricts direct control. Notably, two of the proposed options can be implemented by the city’s investment manager without incurring additional costs. However, concerns were raised regarding the American Friends Service Committee (AFSC) occupation list, specifically its geographic focus and the administrative challenges of reviewing it annually.
In addition to endorsing Option 2, the commission explicitly excluded references to the human-rights based investment exclusion from their memo. A separate amendment modifying Option 1 was passed with a narrow 4-3 vote, removing three broad categories from sample language. This recommendation, though advisory, could significantly influence the city’s investment policy as it seeks to balance administrative feasibility with meaningful action.