tv Police Commission SFGTV October 14, 2020 5:30pm-9:31pm PDT
the pledge of allegiance. please unmute everyone. okay. all right. i pledge allegiance to the flag of the united states of america. and to the republic for which it stands one nation under god indivisible with liberty and justice for all. thank you. please call roll. >> clerk: yes. commissioner dejesus. >> present. >> commissioner hamasaki. >> present. >> commissioner elias. >> here. >> commissioner rickter?
>> present. and commissioner cohen is excused. vice president taylor, you have a quorum. and we have director from the department of police accountability and the chief. >> thank you. for members of the public, the number to call in to provide public comment is 415-665-0001. and access code 14664628. 26, i believe. and remind the members of the public to have any of your devices on mute and there is no background noise and same thing for the presenters and commissioners unless you are speaking. try to reduce the background noise by having yourself muted. if you can please call the first line item, sergeant. >> line item one, reports to the commission, discussion. 1a, chief's report, weekly crime trends. provide an overview of offenses occurring in san francisco.
major/significant incidents and provide a summary of planned activities and events that will include a brief overview of unplanned events or activities occurring in san francisco having an impact on public safety. commission discussion on unplanned events and activities that the chief describes will be limited to determining whether the calendar if a future meeting. presentation of the audit of electronic communication devices for bias third quarter 2020. presentation of the earthquake safety and emergency response bond program 2020, police facilities. >> good evening, chief. >> thank you. good evening, vice president taylor, commissioner, executive director henderson. i will start off the report this week and i am going to start off this week with the most significant incident of the week was an officer-involved shooting that happened saturday night just before midnight. and just going to stick to what we put out in terms of our information to the public and the media. and i will finish that by saying
that we are planning a town hall this coming monday. it will be virtual as the last one was because of covid considerations, but it will be monday at 3:00 p.m. and are planning to release the video and the body worn camera in that town hall as well. but the details unfortunately, the person involved in the incident lost his life. and on october 10 at approximately 11:26 p.m., our officers responded to report of an attempted carjacking with a knife at market street and goal street. officers located the suspect and pursued the suspect where they attempted to detain him. during the contact an officer-involved shooting occurred which was captured and the officer's body worn camera.
the suspect is identified as 21-year-old caesar vargsa was struck by gun fire, and our officers immediately rendered aid and summoned medics to the scene. mr. vargas succumbed to the injuries and died at the scene officers located a knife. the incident is in the early stages of the investigation and is being investigated by the san francisco district attorney's office who has the responsibility for the criminal investigation. looking at whether the officer involved shooting was legal. the san francisco police department internal affairs division and the department of police accountability all who were at the scene on saturday night. additional information will be released as it becomes available and as i said, as our commitment to transparency and accountability, we have scheduled a town hall recording this incident that will be held this coming monday at 3:00 p.m.,
and it will be virtual. so it will be on our website as well as on sfgov tv. now i will go to our weekly crime trends. starting with our overall crime trends for the week. for the week we are actually the part one crimes we are down in property crimes 17%. year to date we are down in property crimes 24%. we are still having some significant challenges with residential burglary which are throughout the city, although we did -- a piece of encouraging news. we did make 11 arrest this is past month for residential particularry, so we hope that will make a difference in slowing this trend down. we continue to address the strategies by really honing in
on some of the more chronic people that have been involved in burglaries. really focussing on them, so that will continue. and control strategies in areas where we have seen spikes hopefully will make a difference as well. we're 42% up year to date which is -- i'm sorry, actually more than that. hang on one second. i lost my place here. 44% up year to date, which is significant, so we will continue to work on that. otherwise property crimes across the board are down other than burglary. we are continuing to address our strategies through key ways as we reopen our economy as you have seen in the news probably, many of the restaurants and shopping establishments are reopening. we're starting to have more people come back to the city which is good news. so we want to make sure that we don't have spike in car
burglaries as people start to come back out and enjoy our city. so that will continue. on that note, we are 45% down compared to 2018 and 52% down in car burglaries compared to 2017. when you look at the comparison to the last year, 2019, we are 42% down in car burglaries. our violent crime is up for the week by 18% unfortunately. overall for the year our violent crime is down 21%. we are up in homicides as i explain to the public in the commission last week, and we're still up in homicides, although we did not have any homicide this is week. we had two homicides in october, following a pretty bad month in september where we had five. other 39 homicides year to date we have a 74% clearance rate and we are -- we made actually an
arrest the other day on our last homicide, so that case is in progress and we will be presenting that to the district attorney's office. looking at shootings, which is also up by 11% year to date, the breakdown is six of the 10 districts and the most significant increase in shooting year to date are bayview, 40 compared to 31. engleside, 14 compared to 8, and tenderloin 18 compared to 8. and then mission 13 compared to 9. the northern district, central district, southern district, and richmond district are all down year to date, and the far district is up from zero shoot this time last year to one shooting. we are focussing our efforts on those districts that are the most violent, and hopefully we can turn this around heading
into the last quarter of the year. the good news is we did not have a homicide over the past week. other significant incidents this past week, as i said, no homicides, but we did have three shooting incident this is past week resulting in three victims being shot. on wednesday, october 7, at 10:36 officers found a victim who was bleeding from his leg and had an apparent gunshot wound. this happened in the parking lot of the safeway west on webster street in the northern district. the victim was transported to the hospital and is in stable condition. we are looking for information on that particular incident. if anyone had any information, please call our tip line 415-575-4444. second incident on thursday, october 8, at 12:05 a.m., the victim was walking home from a house party on the 200 block of
texas and bayview in the petrero area. the victim's girlfriend was inside her residence when she heard an argument outside followed by gunshot. she found the victim outside suffering from gunshot wounds to his lower body, and the victim was transported to the hospital where he understood went surgery. -- where he underwent surgery. just now before this meeting started i was just informed that today a couple of minutes ago made an arrest on that case and also recovered a gun, but that is an ongoing investigation. actually, uncovered two guns and made two arrests. that is an ongoing investigation, but happy to report we did recover two guns and so we have arrested the suspects in that case. third incident on friday, october 9, at 4:22 p.m., the victim and an acquaintance were in the vehicle at the 1100 block in the bayview district when an s.u.v. with four subjects pulled alongside them. one of the subjects asked the
victims where he was from, which is the sign that this was gang related. and the victim feared for his life and tried to drive away but suffered gunshot wound and then he crashed his vehicle as he tried to flee. the victim did not suffer any life threatening injuries in this case, and again, we are looking for the public's help in solving this particular shooting. >> on 10:13, october 13 at 9:30 p.m., this is the fourth incident in which a victim was actually shot -- so three of the incidents we had victims hit. the last one that i mentioned the victim was not shot, but he crashed his vehicle and was not injured from the actual shooting. the fourth incident which was last night at 9:30 p.m., the victim was in the area of ghost street in southern district and was actually at a candle light vigil memorializing the person who lost his life in the officer-involved shooting. the victim felt a burning
sensation and realized she had been shot. she was transported to the hospital and is in stable condition. that one is under investigation. we are also looking for witnesses in that. there was this was not a whole lot of evidence to go from. and the last shooting incident with the shots fired incident in allison jones, where a victim was -- this was today at 12:27 a.m. the victim was located and was transported in critical condition. the suspect was actually located and barricaded himself in an apartment and was later arrested in that particular case. so again, gun violence is a significant issue in our city that we will continue to focus on and continue to work with all of our parameter partners along with community and hopefully
turn this around in the last quarter of this year. and that concludes this portion of my report. if there are any questions. >> thank you, chief. i don't see any questions from the commissioners. i have a brief question. you mentioned the town hall for the ois is on monday at 3:00 p.m. will you be playing the body worn camera footage at that town hall? >> yes. >> all right. thanks. >> thank you. >> commissioner elias -- >> if you have a question, put your name in the chat. >> chief, will information to log onto the town hall, how will that be disseminated to the public and can we also put that information on our website so people will have access to that information so they can join in on the town hall? >> yes, commissioner elias, they will. and if the public is also on
sfgov tv and they are, like the last virtual, helping us put this on. it will be on sfgov tv and we will put it on the website as well as give that information to sergeant youngblood. and with the opening question. chief, call the next item. >> now we have a presentation of the third quarter electronic devices presented by commander robert o'sullivan. >> thank you, chief. sergeant youngblood k you hear me? >> yes. >> thank you. good evening, vice president taylor, commissioner, chief scott, and director henderson. i am commander robert o'sullivan and i am here tonight to present
the third quarter audit for the electronic communication devices for bias. i will start this evening as i always do with this presentation to provide some background for the commission as well as the viewing public. all members are aware the department's electronic communication devices and systems are audited and the members do not have an expectation of privacy. the following documents explain the department's policies concerning the use of communication devices and systems. number one, department general order 10.08, which is titled use of computers and peripheral equipment. department bulletin 19-051 titled sfpd members expectation of privacy, use of computers, peripheral equipment, and facilities. and finally, third, internal affairs bureau order 18-02. it is important to know the auditor limited to devices that
the department owns and not any member personal devices. the audits, however, do capture electronic messages that are transmitted from personal devices to department devices. three systems are audited, and they are as follows. number one, level two, which is california law enforcement telecommunications system and i will refer to that as clets. and email and text messages and all sworn department members are issued a department issued phone. a department owned phone. i will explain how each one of these audits and the systems are audited in the results of the third quarter 2020 audit. first, level two. the program was established which searches all entries made into the system using an established word list. and that word list has procter & gamblesly 65 word on it and is
passive in nature and runs continuously. if the member uses one of the identified words, the hit is generated and sent to personnel via the level two access portal. each hit is printed, scanned, and saved to a file. staff analyzes every hit throughout the week and those determined to be potentially biassed are investigated. the level two audit process has been fully operational since december of 2016, so coming coming up on four years now. third quarter results from july 1 through september 30, there were 52 hits returned from the program, and after review by iad members, none of the 52 hits were determined to be potential any bias. our second system, the department email. all emails sent and received through the department's server are audited using an established word list. it is passive in nature.
if an email contains one of the identified words on the list, a hit is generated and sent to ied personnel via email address used exclusively for this audit process. those emails are saved and maintained on the server. staff, like with the clets hits analyzes every hit and those determine to be potentially biassed are investigated. from july 1 through september 30, there were 259 hits returned from the program. after review by ied members, none of the 259 hits was determined to be potentially bias oriented. our third and final system, cellular phones. audits of text messages sent and received via each department issued phone was conducted by, again, the internal affairs division. and investigators are trained to conduct active audits using a program developed by cellular provider at&t in conjunction with the sfpd information technology division. every 30 days a search is done
of all text using the established word list. additional terms can be searched as well. staff analyzes every hit to determine then cotext in which the term was used. those hits determine to be potentially biassed are investigate and all false positive hits are saved by at&t. from july 1 through september 30, there were 511 hits returned from the program and after review by ied members, two of the 51 hits were determined to be potentially bias oriented. administrative investigations have been initiated into both of those potentially bias circumstances. that concludes my presentation. and i am open for your questions or comments. >> thank you. what, if anything, can you tell us about those two potentially biassed hits, and when will the substance and the conclusion of the investigations come before
the commission? >> so i can't tell you what those words are. that is not for public disclosure. obviously i can't do that in this forum. what i can tell you is that the administrative investigation will certainly be done within the statute of one year per 3304 of the government code. and in all likelihood these investigations, although i am not been given feedback to depth of them just yet. that will take a while because it is in the preliminary stages but if the investigations follow others that we have done, it will be a matter of a handful of months before we come to an investigative conclusion. in the event that there is a finding of a sustained violation of department policy, that will go through the risk management office up to and including the chief of police and based on the chief's decision as to what the appropriate discipline should
be, it would then be decided as to whether or not that particular case would be forwarded to the commission for your review. >> president: i'm sorry? >> i'm sorry, commissioner, i was going to add -- i know you know -- but for the public and if the recommended discipline exceeds 10 days, that particular case is then forwarded to your office. if it's 10 days or less, that is discipline stays in the chief level. >> president: i think you mentioned that the time period is july 1 through september 30. so then we're october 14 right now. am i right that the investigation would have been two weeks in whatever investigations have been pending? trying to get a sense of how long it will take. >> the first hit occurred in the
month of july. and the second hit occurred in august and the investigations have been open and pending since the hit? >> a they have been pending -- they have been initiated. but pending in the sense they haven't been concluded, yes. >> correct. okay. >> in order, maybe i can answer or provide this feedback is that we don't wait until the conclusion of the quarter to start the investigation. >> good. all right. >> the audit itself is done on a regular basis. >> president: okay. any questions? i don't see any questions from commissioners. all right. next item. >> thank you, commissioner. next i will turn to deputy chief yee to introduce the other presenters. and this and this report is on project management and some of
the facilities that we are in the process of upgrading and the status of those projects. so deputy chief yee? >> good evening, vice president taylor, commissioner, chief scott, and the executive director henderson. tonight mr. charleser degeurse will present the emergency general bond obligation opportunities which will allow the city to structurally upgrade some and i will turn it over to mr. harris. >> thank you and good afternoon. my name is charles and i am the public works acting director for project management. in this role i am responsible for insuring the successful delivery of bond programs and the capital projects that result
and to present the response 20 bond program. as you know the city's capital plan identifies the funding sources for the improvement of the city, facilities and infrastructure. in the case of the sefk and this source has been voter approved other than by again obligation bonds and look forward to a similar in 2027. >>ache and we are impressive to bump the level of voter support and to which we have been enabled to improve first responder facilities and infrastructure. the first bonds produced other $800 million in funding for
projects. with regard to police, this funded the new police headquarters and and with the focused improvement at various stations. and the new traffic and the project currently under instruction and the et voer approved passage of the 2020 provides $121 million for police projects. how we arrived at which projects will be advanced with this and of the highest importance and to make sure that the dushrabilityf facilities is sufficient to protect those in the facilities and the public served. we have had a thoroughen and
according to the city's own seismic hazard rating system we find all by two facilities to be adequate for insuring life safety. and is satellite illustrates these two as indicated as shr4s or shr3's. it is important to know that the category provides for the occupants of the facilities to safely egress and not necessarily to allow to resume the normal operation. to achieve unambiguous immediate occupancy or shr1 would require substantial renovation or replacement of a facility. currently the public safety building which is the police headquarter and just the only
shr11 among all police facility. next slide please. >> another criterion of particular importance in deciding how to best engage and as you can expect, a facilities built anywhere from 60 to 100 years ago are not sized to respond to the modern era whether functionally or according to building code standards or as i have just described, the seismic worthy and we have revitalized the guidance with the assistance of expert architect consultants with deep experience among many police departments and working closely with the police command representatives. these guidelines and standards produce a steady report that's
been applied to the 2020 projects that i will now present. next slide please. the largest project is the replacement of the engleside location station in district 11. built over 100, it is half of the area of an ideal modern facility. we believe the size of the replacement facility proposed, though less than the ideal area k provide the necessary functional integrity for the police operations at that elocation. next slide please. the next largest project is the police range with the essential fact that drives this project as a priority project is on the verge of schurl collapse. the large span are open to the
sky and you can see photographs of the trusses and have become severely comprised by the exterior exposure. and next slide. and the project is a surge or interim facility to house the engleside station while it is being replaced. this will be a lease modular buildings at a city appropriate, for example, at the zoo depicted here. sorry, advance to next slide. thank you. or maybe at a lease facility large enough to accommodate the police need. our city's real estate department is currently working on available alternatives. next slide please.
the final project is at mission station and from the building defect and next slide please. and this concludes my presentation. thank you for the opportunity and i am available for any questions you may have. >> i don't see any questions from commissioners. thank you for your presentation. next line item. i think we are supposed to have the commission here and i am not sure if there is any representative. i don't see anybody from the youth commission on. >> this might be a good time that item c will be d sorry 6b
on the agenda will be continued to next week. and also many are wearing pink because it is pink patch month. and we will talk about this next week as well. sergeant youngblood, i don't know if you are able to put the information on the screen for folks if they want to donate to get a patch. there is an email address and a number.
that is information that will be up next week as well. this will be up next week to help support breast cancer. one last call for anyone in the youth commission. let's tall the next line item. >> d.p.a. director's report. it will be limited to a belief description of activities and announcement to calendar the issues raised for future commission meeting.
>> you are muted. >> sorry. good evening, commissioners. i have just a brief presentation because i know that we have another presentation we will be making following this on the direct information and where we are and what we are working on so far. we have had a number of meetings just checking in with from the issues and to make sure that folks and many of the work is taking place remotely and see the numbers have continued to go up. we have continued to close the cases and stay on top of things. we are at 642 cases so far this
year that have been open. that is up from this time last year which was 585 cases. in terps of cases that have been closed we have closed a record 704 cases and we have never that i am aware of so u will look into that and have a better answer for you next week. i am not aware where we have closed as many cases in this time frame. last year we closed 498 cases. in term of pending cases we have 377 open and pending cases and this time last year we had 406. we have sustained 34 of the cases so far this time last year in terms of cases that have been under investigation longer than nine months and that is 29. this time last year we were at 39.
we mediated 30 cases this year. last year at this time we were at 27 cases. currently there are 35 cases that are that are pending with the police commission. we have no cases that are in closed session tonight for d.p.a. discussion and participation and with the outreach and training and a lot of the outreach is virtual. we participated in a stakeholder engagement series to focus on trance organization sharing community resources during the pandemic. we've also participated in the engagement series and
stakeholder engagement series specifically with the youth commission. we also have a scheduled know your rights presentation with the youth commission on the 19th to stay connected and we have had a number of trainings. and the chief of operations pretended and participated in this cmcr that is a mindset response training with the better understanding of what the training is to tie it to the policy recommendations and throughout the year on various topics. and next week i will have as a preview to agendaize or part of the presentation and the overview but i reached out to an independent agency to evaluate
dba and make a comparison with the other oversight agencies in t state and the rest of the country. and i wanted to gauge in terms of sharing information, transparency and accountability what the numbers look like as compared to other agency. i think it will be more useful and help to feel the agencies that grew out of conversations that i was having with to the accountability agency. i should have more information as early as next week. i will stop there. i know we have a presentation on the direct share we will be presented from my office about ongoing issues in terms of sharing information with the department and with that i will conclude my report.
>> to put them into contact and i appreciate it. and i wanted to commend you for your ability to really receive constructive criticism and feedback and take it and run with it. and it is telling to open yourself up to scrutiny and more transparency than you already are by having your numbers and your agency compared to other ones across the nation, so i will commend you on being brave enough to do that because some people aren't willing to take that step. i think that that step is a huge step for your agency and is going to help you become even better and productive criticism and always asking for feedback and to use that to make the agency better. i can tell just by the
conversations that we have had with the materials you have been presenting by your attorney, so thank you. >> thank you for saying that. i don't know how well i receive it and to listen and incorporate it and with the public forums and often times the feedback and the criticism and comes fast and furious. public comment is what it is. we are a public agency and this is a public process. and all of us expose ourselves to the ongoing work at the police commission in a public forum way that is exposed. so that is part of the job and sometimes it's easier than others. frequently especially when we are trying to do new things and trying to address reforms, it is all new.
and that doesn't make it less mandatory or less important. at some point it is what it is and here is what the numbers are and here is what the facts are and if it is not well received, the pub lib has a right to know and the department has a right to know and the commissioners have a duty to know this information. and the pushback you get if and when you guys get pushback from me is coming from a place of difficulty with budgets and personnel, not from a lack of commitment to the vision and the mission. i don't know why i am making a speech. sorry. thank you. sorry. >> thank you.
>> it's like you had that written out, paul. >> i got in tv mood. >> there were a lot of feelings in there. >> you know because sometimes it's hard getting that feedback. and i am, like, mmm. >> definitely roll with the punches. i got to give it to you. it's, like i said, it takes a strong person to be able to say, hey, come examine me and that is what you are doing, so i commend you. >> let's wait until we look at it and then -- >> remember this when we get the results. >> exactly. >> exactly. >> thank you. next line item. >> line item 1d. commissioners' reports. commission discussion will be limited to determining whether to calendar any of the issues raised for a future mission
meeting. commission president's report. commissioners' reports. commission announcements and scheduling of items identified for consideration at future commission meeting, action. >> i see no hands in the chat. next line item. >> next line item is public comment on line item one. at this time the public is welcome to make public comment on line item one. for those who would like to make public comment, call 415-655-0001, access code 146 646 2826 and press pound and pound again. for those online on webex, press star 3 to raise your hand. >> sergeant, since the youth commission didn't happen tonight, let's go 3 minutes for public comment. >> thank you. so far you have two on the phone. >> okay. >> hello, caller. you have three minutes.
>> good evening, caller. caller, are you there? you have three minutes. okay. we will go to the next. good evening, caller. you have three minutes. >> caller: good evening, commissioners. chief scott, and executive director henderson. i am deputy public defender brian cox. after reading the details of the audit electronic communication report, really question the report's utility. it hits in three areas. clets, department email and text messages the out of 362 potential biassed items the audit uncovered the department found that just two were potentially buy biassed. that is only half a percent. while that sounds like a ringing endorsement, the facts on the ground are cutback and suggest that the tool doesn't capture
the right data. reviewing electronic communications is important but sfpd can and should devise better tools to accomplish the same objective. how can they do those reports and do they know the search terms and can it make recommendations or suggest reforms on the process and ask for regular status updates on the investigation of the two potentially biassed hits found in this report? the reports to provide accountability and transparency and boast both laudable and worthy goals and in practice they fall short because there is little transparency in the process or methodology and no visibility accountable as the commission plays a role and refuses a role. and because the auditor report does little work, they should push sfpd to make the audit something that matters or get rid of it and thank you.
>> thank you. next caller. >> caller: this program doesn't -- this program also collects data from devices that aren't on bias sfpd and say, somebody who isn't really related to spfd who sends a text message to an sfpd device and will monitor those text messages or emails. and so how does this program protect the privacy of those individuals who do not consent to be part of this? how -- are they ever notified
that the communications are being monitored? i am very concerned about the implications of this. thank you. awe thank you. anymore callers? >> no. >> all right. next line item. >> line item 2, status report regarding d.b.a., sfpd information sharing agreement. discussion. >> hi, commissioners. >> good evening, vice president taylor, commissioners, chief scott, director henderson. i am sharon wu, the chief of operations at dpa. and i am here with assistant chief to talk about a status update on information sharing. as a way of background, i will
tell you that historically there have been challenges in sharing information with the department. most of that has been anecdotal and we have started to detail some of the areas that we would like to share bet we are the department. that was codified in a letter to the commission back on july 14. the department responded to that letter on august 10. on september 3 we started a series of meetings. and i think through the meetings we isolated the top four that we thought we could deal with earlier, quickly and be able to have common ground in terms of information sharing. and that is the status update and assistant chief mozer and i will be giving you today and knowing this is just a start to what i think will be a much fuller discussion. and something that we hope will be codified in a letter of agreement between the departments so that we can document and identify all of the deeds agreements that we have
made. so there is a power point. thank you, agent young blood. next slide please. the four areas that we have identified have been through the intra net and hrms. a share point document which will track discipline and body worn cameras. chief? i am assistant chief bob mozer. as sharon had mentioned, we have been working on this since early september. and we have some good news to report. we were able to accomplish a number of dba's requests and did so working very collaboratively if i may say so and very quickly
on this. so our first big area that we were able to make headway in is with power dms. dba requested access to the department intra net. the intranet program is a very old program that the department is currently phasing out and replacing with power dms. what we were able to do was grant dpa access to power dms which gives them access to airport, general orders, all department bulletins, department general orders, all manuals and guides, all unit and bureau orders, and all department forms that they had also requested or posted on power dms. and as well all new policies that come out and all new department bulletins that come out are posted on power dms so the dpa will have access to all
of those policies as the department does. next slide please. the next major area where we were able to make quite a bit of headway is access to hmrs which is the human resource management system. dpa had requested several areas to access hrms and dpa has access to job data, daily assignment, employee scheduling -- go back there -- thank you. employee scheduling history, officer activity, and officer training histories. so that gives them the ability to look up in real time and future time officer assignments. they also were able to run reports. those reports include reports of based on rank of all rosters, watch off calendar, monthly activity reports, employee work history, unit station seniority, and unit seniority as well.
has given hopefully a letter of intent to discipline. from that point we can track whether or not discipline is imposed, whether it was referred to the commission and any appellate process that goes through that as well. we'll also be able to identify when potentially dpa's recommendation was either agreed upon, because lower or higher than that. and i think that annual report will retract discipline, will be much more complete i think is a better word, and that there will be the ability for both the department and dta to add information and track those together. hopefully i'm encouraging the commission to have another status with us so that we can report on the further progress that we've been making, and so i'm hoping in another couple of
months we'll have this up and running and we can show you a finished product. >> ask and you shall receive. >> thank you very much, vice-president taylor. next slide? so there are areas that we haven't been able to come to agreement with. and it isn't for want of trying. body-worn camera is one of them, and also put in there daes warehouse. currently police accountability is not considered a law enforcement agency pursuant to the department of justice. there is inadvertent material that is criminal information that is regulated by doj that may show up on body-worn camera. that is potentially showing the screen, the computer screen in the patrol vehicles. viewable information from dispatch that would give
criminal information that a law enforcement agency is not allowed to have through doj. and so we can't have direct access to evidence.com. that has been the department's position. i don't have any reason to think that that is not true. from my experience in my former job at the da's office, i know that the department has had some audits on d.o.j., and because of some of the issues, the d.a.'s office got their own license, and so i think that is true. we have talked about possible solutions. one of them, a huge solution would be identifying civilian oversight agencies with law enforcement agencies so that we could have this sort of inadvertent access to material. that's a state-wide solution, and nothing that we can deal with in the now, the current. another area would be to contact
d.o.j. to see whether or not this inadvertent access would not be a violation of the police department class license, and i have a call in to d.o.j. i have to say that i am not -- i'm not optimistic that that will be something that d.o.j. will agree to, and so we're trying to consider workarounds. one would be d.p.a. getting their own evidence.com license. that -- sharing but it would still require the department to get each one of our requests through the bode worn camera and redact and ensure that no -- information is on that body-worn camera, and that really is the bigger delay. and there are also cost concerns about getting our own evidence.com license. it is costly. it's expensive, and the storage that is necessary is also
costly. so that's one of the things that we are working on, and again, which i would ask the commission to have us update them when we come back in a couple of months. next slide, please. so i do want to say that, you know, the pandemic has had such incredible and horrific things happening with society, but one of the -- i don't even want to call it benefits, but one of the things that it forced us to do, like we're having virtual meetings, it forced us to share in different ways, and i think the new way we're sharing with the department has increased the efficiency and increased effectiveness in that sharing. one of them is that we have now a single point of contact with the department. we can send one person in the department our requests for records. that person then will disseminate those requests to other places in the department, whether it's the district
station or legal one area. one person being responsible, one person that we need to contact to ensure that we have sent it to the right place, one person who is responsible for getting us the information back as opposed to every district station, several people at every district station. i think this is much more efficient and effective. and then the second part is that we have now gone completely electronic with the department. we make our requests electronically. we receive our information electronically. we used to use the fax machine which i am -- you know, i'm astounded, it was so ineffective and so inefficient, and so i think that this use of electronically making our requests and electronically receiving the information is a huge upgrade in the way that we share and we receive information. and this will become a permanent way that we do things. next slide, please. and then there are some no access to information, and we
had asked for many our letter access to the e-stop data, and the department had told us, and we had seen it through some of the d.o.j. materials, that they no longer use e-stop. and perhaps ac moesier can expand a little bit about that and the type of information that e-stop data used to have and where it goes now and how we would be able to access it. >> e-stop -- thank you, sharon. e-stop data was a precursor to our state claim requirement when we have the state reporting requirement, ripa, went into effect. we now transmit our data directly to the state so all data is stored at the state level, not the department level. >> and so for d.p.a. to access that material, we would have to ask d.o.j., which we would intend to do should we need it. and then one of the last
bigger-ticket items was the internal affairs remote cards, and those are only available upon request, but since our requesting procedure is much more efficient, we think we won't have issues receiving responses on the card requests. and i will report back in a couple of months if we have any issues at all. next slide, please. and so really this is the end of our presentation. in the last six or eight weeks i think that we have come a long way in understanding and in sharing the information sharing that's necessary between the departments. i know that ac moser and i are going to work on a letter of agreement which would codify all of these agreements. i thank the commission tremendously for their help. phil lowhouse has been part of all our discussions and he's kept us on track, and i think that was really important in this process. and if there's any questions or any comments at all, i'd love to
hear them. >> thank you. i have one question and then we will turn it over to other commissioners. i remember when i first joined this commission and i first learned that you guys didn't have clets access, which to me is just crazy, and it's a little bit disappointing that, you know, d.o.j. is part of the call for reform and pushing reforms and managing the reform process but at the same time denying d.p.a. clets access to -- would help bring the reform process to fruition. so can you tell me more about what you plan to do if there's anything the commission can do? i think it's just so much more difficult for you to do your job without access to clets information sna . >> you know, i would take any assistance the commission is willing to give us, and the weight of the commission, especially in speaking with
d.o.j. in order to identify civilian agencies or law enforcement agencies we'd have to change the statute because they have identified all the law enforcement agencies within the statute. so it would have to be something this would include d.p.a., oversight agencies in general to be considered a law enforcement agency to be allowed the type of access that other law enforcement agencies have. i don't know exactly what it would take for d.o.j. to say sharing this inadvertent information would not be a violation of the clets agreements that the department has with d.o.j. to use all of these systems. it is part of an audit that they do regularly. they have to be able to identify who's using what to see if there's any improper use, so i understand that, but i will -- i will put on my thinking cap, vice-president taylor, and i
will work with ac moser to try to come up with some other solutions. i do think that one of our biggest challenges is the time that it takes to get vwc and to be reviewing that as well. i think access to criminal histories is less since most of our investigations, you know, are not geared toward criminal, obviously, investigations. so it really is bwc access and the inadvertent access to criminal history information. i will definitely -- we're definitely working on it, and i will let the commission know how it can be helpful and hope that you will support us in our efforts to be able to get direct access. >> thank you. commissioner? >> i think director henderson had his hand up, so maybe he should speak first. >> okay. oh, yeah, he -- i was just taking you guys in order. director henderson, feel free to go first.
you're muted. sna sorry. i don't know how to wave my hand on this thing. i went through the whole thing trying to figure out, and then i was like, let me just put a question. i just wanted to follow up on a couple of things that were raised and just frame some of the context from the presentation, especially with the clets stuff. and asking around to my peers from other counties and seeing how they address this problem, they had a different approach from their city attorneys office who was the holder, who would meter out a lot of the information with their clets. but as ms. woo said, we are looking at solutions that are internal and external, which would allow possible legislative solutions, either at a local or a state level as well. so that's part of where we're going. and i just wanted to frame, you know, it looks like a lot is being done, but it really is so much more because a lot of the issues that were in that letter that was culminated from july 14
from my agency have been a long time coming, and these have been long-standing issues back and forth about having -- trying to get information from the department, and including updating the d.p.a.'s own records. a lot of our own records, and this is part of the digitalization process. as you recall, much of our records, we were photocopying and sending things back and forth in the mail and on faxes 40 to 50 documents a day back and forth, and that was the cornerstone of the henderson report. and as we started digitalizing our process, the need to have that information from the department i think increased, but also was easier because information was available digitally and could have been shared more easily, and so my point is that there have been
many years of leading up to this that led to the july 14, and a lot of work has been done in the past, in the past six to eight weeks to address many of the delayed investigations or blocked investigations because information, we either didn't have or weren't sure of how to ask or who to ask it for. it wasn't that attempts weren't being made, but this is attempting to solve all of these things all in one fell swoop, and so it's groundbreaking that this is being done right now, but i would say that it is still somewhat incomplete, and i think both of the -- both of us have alluded to that, both myself and moser also say that there's still more work to be done. and so again, i'd like to come back and present again when we have a better l.o.a. and i can have an update on the clets stuff for all of you as well, and then we'll see just where we
are, but i do want to keep this moving forward. a lot really has been done, but let's see how it works and plays out while we sort through things and then we'll just see in a couple -- i don't know how much time you guys want to give it. i would say -- i would think just knowing or having a better sense of what the issues are, both from the presentation and knowing what the requests have been in the past, that it would need at least one or two months, but i'm open to whatever the commission wants to hear. however the commission wants to hear it. we'll come back whenever, but i would think that it needs at least two months, not just to set it up, but to give it time to see if it's actually working, if information is being translaid, and if we're able to get the information too. >> if we put it on the december 2 agenda, that enough time? that's a month and a half. >> either way you'll have a substantive update, i believe,
and i'll let moser and woo answer that directly, but a lot -- so much has been done already in just these past few weeks, i can't imagine you wouldn't get helpful information. i just don't know if that's enough time for them to give a more substantive l.o.a. they can answer. >> i'm sorry, vice-president taylor. i'm actually not going to be here on the 2nd, so i would appreciate it if we go a week later. >> that's fine. >> is that an answer? >> so the 9th it would be. i think, chief moser, does that work for you? >> yeah. i think so. i think working on an l.o.a. certainly on everything that we have agreed to and presented tonight, i think that's absolutely a possibility and it will give us time to see how everything has been working, how
our sharing of information through our case sharing information is working. so i think we'll have a good idea by then. >> thank you. commissioner elias? >> thank you. i'm really happy to hear of all the progress that's been happening, and i also do want to join in on this -- thank you to phil because he has been an integral part of this and has really been trying to move things along. i'm glad that we will be bringing this back for another update. one of the things that i wanted to also perhaps have you address at the next meeting is if these issues are not able to be worked out, what are the interim solutions? i know that you're working on the sharepoint. i know the bwc is an issue, but i still think that things like the bwc may be a longer process
to resolve, so there should be measures in place in the interim to make sure that this information is being exchanged in a more expeditious manner. so i would like you also to just keep that in mind as well, and again, i appreciate the efforts on both sides to get this moving. >> thank you. i don't see any other questions from commissioners, so unless the presenter has more, i'll call the next line item, and thank you for your time and look forward for when you come back. >> thank you. good evening. >> thank you. >> next line item is public comment on line item two. at this time the public is now welcome to make public comment on line item two. call 415-665-0001 access code 146-646-2826. those already logged on, please
press star 3 to raise your hand. you have one caller. good evening, caller, you have three minutes. >> oh, i wasn't in the queue, as far as i know. i'm sorry. >> no problem. >> okay. next line item? >> next line item, line item three, general public comment. at this time the public is now welcome address the commission
>> he is a real leader that listens and knows how to bring people together. brought this department together like never before. i am so excited to be swearing in the next chief of the san francisco fire department, ladies and gentlemen, let's welcome, jeanine nicholson. (applause). >> i grew up total tomboy, athlete. i loved a good crisis, a good challenge. i grew up across the street from the fire station.
my dad used to take me there to vote. i never saw any female firefighters because there weren't any in the 1970s. i didn't know i could be a fire fighter. when i moved to san francisco in 1990, some things opened up. i saw women doing things they hadn't been doing when i was growing up. one thing was firefighting. a woman recruited me at the gay-pride parade in 1991. it was a perfect fit. i liked using my brain, body, working as a team, figuring things out, troubleshooting and coming up with different ways to solve a problem. in terms of coming in after another female chief, i don't think anybody says that about men. you are coming in after another man, chief, what is that like. i understand why it is asked.
it is unusual to have a woman in this position. i think san francisco is a trailblazer in that way in terms of showing the world what can happen and what other people who may not look like what you think the fire chief should look like how they can be successful. be asked me about being the first lbgq i have an understands because there are little queer kids that see me. i worked my way up. i came in january of 1994. i built relationships over the years, and i spent 24 years in the field, as we call it. working out of firehouses. the fire department is a family. we live together, eat together, sleep in the same dorm together, go to crazy calls together, dangerous calls and we have to look out for one another.
when i was burned in a fire years ago and i felt responsible, i felt awful. i didn't want to talk to any of my civilian friends. they couldn't understand what i was going through. the firefighters knew, they understood. they had been there. it is a different relationship. we have to rely on one another. in terms of me being the chief of the department, i am really trying to maintain an open relationship with all of our members in the field so myself and my deputy chiefs, one of the priorities i had was for each of us to go around to different fire stations to make sure we hit all within the first three or four months to start a conversation. that hasn't been there for a while. part of the reason that i am getting along well with the field now is because i was there. i worked there.
people know me and because i know what we need. i know what they need to be successful. >> i have known jeanine nicholson since we worked together at station 15. i have always held her in the highest regard. since she is the chief she has infused the department with optimism. she is easy to approach and is concerned with the firefighters and paramedics. i appreciate that she is concerned with the issues relevant to the fire department today. >> there is a retired captain who started the cancer prevention foundation 10 years ago because he had cancer and he noticed fellow firefighters were getting cancer. he started looking into it. in 2012 i was diagnosed with breast canner, and some of my
fellow firefighters noticed there are a lot of women in the san francisco fire department, premenopausal in their 40s getting breast cancer. it was a higher rate than the general population. we were working with workers comp to make it flow more easily for our members so they didn't have to worry about the paper work when they go through chemo. the turnout gear was covered with suit. it was a badge to have that all over your coat and face and helmet. the dirtier you were the harder you worked. that is a cancer causeser. it -- casser. it is not -- cancer causer. there islassic everywhere. we had to reduce our exposure.
we washed our gear more often, we didn't take gear where we were eating or sleeping. we started decontaminating ourselves at the fire scene after the fire was out. going back to the fire station and then taking a shower. i have taught, worked on the decontamination policy to be sure that gets through. it is not if or when. it is who is the next person. it is like a cancer sniper out there. who is going to get it next. one of the things i love about the fire department. it is always a team effort. you are my family. i love the city and department and i love being of service. i vow to work hard -- to work
hard to carry out the vision of the san francisco fire department and to move us forward in a positive way. if i were to give a little advice to women and queer kids, find people to support you. keep putting one foot in front of the other and keep trying. you never know what door is going to open next. you really don't. [cheers and >> san francisco parks, golden gate park transforms into one of the greatest music festivals of all time, let's journey,
inside, outside land. ♪ >> to this, our 6th year doing the outside lands and our relationship with san francisco, rec and park. and we work very closely with them in the planning and working very closely with the neighborhood organizations and with the city supervisors and with the city organizations and with the local police department, and i think that the outside lands is one of the unique festivals in the world and we have san francisco and we have golden gate park and we have the greatest oasis, in the world. and it has the people hiking up hills and down hills and a lot of people between stages. >> i love that it is all outside, the fresh air is great. >> they have the providers out here that are 72 local restaurants out here.
>> celebrating, and that is really hot. >> 36 local winerries in northern california and 16 brewers out here. >> and you have seen a lot of people out here having a good time and we have no idea, how much work and planning has gone into this to make it the most sustainable festival in the united states. >> and literally, in the force, and yeah, unlike any other concept. and come and follow, and the field make-up the blueprint of the outside land here in golden gate park and in the future events and please visit sffresh parks.org.
67.12-a. commissioners, may i have a motion whether to disclose or not to disclose? >> i'll make a motion not to disclose. >> second. >> second. it has been moved by commissioner casciato and seconded by commissioner driscoll. at this time, we'll take public comment. [inaudible] >> please press star, three to be added to the queue. if you are already on hold, please wait until the system indicates you have been unmuted. moderator, are there any callers on the line? >> operator: madam secretary, there are no callers on the line. >> clerk: thank you. hearing no calls, public comment is now closed. president bridges? >> thank you, madam secretary.
again, it is moved by commissioner casciato and seconded by commissioner driscoll that we not discuss the matters held in closed session. madam secretary, a roll call vote, please. [roll call] >> clerk: you have four yeses. motion passes. president bridges? >> thank you, madam secretary. next item, please. >> clerk: item number 6, general public comment.
diversefication is only warranted if investors do not understand what they're doing. that's the end of his public comment. >> thank you, mr. hughes, for submitting that comment. madam secretary, please open the phone lines for general public comment. >> clerk: members of the public who wish to provide public comment should call 415-655-0001, access code 146-579-2423, then pound, and pound again. when connected, you will hear the meeting discussion but mutes and in listening mode only. when your item comes up, dial star, three to be added to the speaker line. best practices had to calling from a quiet location, speak slowly and clearly, and keep
your microphone muted. madam operator, do we have any callers on the line? >> operator: madam secretary, we have no callers on the line. >> clerk: thank you. madam pra madam president, we have no public callers on the line. >> thank you. madam second, next item, please. >> clerk: item 5, approval of the minutes of the september 9, 2020 retirement board meeting. may i have a motion? >> so moved. >> may i have a second. >> yeah. >> second. >> it has been moved by commissioner chiu and seconded by commissioner casciato that we adopt the minutes from the
september 9, 2020 retirement board meeting. we'll take public comment at this time. >> please press star, three to be added to the queue at this time [inaudible] moderator, are there any callers on the line? >> operator: madam secretary, there are no callers on the line. >> clerk: thank you. hearing no callers, public comment is closed. president bridges? >> thank you, madam secretary. roll call vote, please. [roll call] if
>> yes. >> yes. that would be what would be exhibited in the board packet, and also, they could present an oral presentation of the conference, also, if they wanted to at this point. >> okay. so we're just moving it from the back end to the -- you know, what we've gotten is, in the last couple months, just moved it from the back end to the front end of the agenda, correct? >> no. the comments -- the good of the order comments are still at the end of the meeting. this is just for approved -- it used to be approved travel and attendance at conferences, but the board policy requires that a board member present, you know, a review of the agenda. so this does not replace the good of the order. the good of the order -- >> no, i didn't mean that. i didn't mean good of the order at all. we used to have it the back end -- we used to have the copy
of the form, and that'll be included in this item 6-e? >> yes, that's correct. >> so the form will be included, and when we make a motion for the minutes, if anybody wanted to make a motion regarding the minutes, this is where they do it? >> that's absolutely correct. >> okay. i'll make a motion to approve it. >> commissioner casciato, to approve the consent calendar?
>> that's correct. >> okay. >> second. >> okay. we have a motion and a second to approve the consent calendar. public comment, please. [inaudible]. >> operator: madam secretary, we have no callers on the line. >> clerk: public comment is closed. president bridges? >> yes. roll call vote, madam secretary. [roll call]
>> clerk: we have four yeses. motion passes. president bridges? >> thank you, madam secretary. next item, please. >> clerk: item number 7, discussion item, annual esg update. >> thank you, madam secretary. at this time, mr. coaker, i'll let you make the introductions of the members that will be presenting the usg updates. >> thank you, president bridges. [inaudible] collaborating with others on esg initiatives, and hiring a director of esg
investing. andrew collins was hired in such a position a few months later, and andrew was tasked with building a fact-based data driven, research-intense approach dedicated to carbon related investment reps, and he has been doing so sense. we hired ann, who was hired a few months ago. there is a series of six recommendations. five are action items, and one is an update. recent initiatives have included staff making an ambition, staying in ambition to become carbon neutral by 2050, and that we'll have an annual update and strategic
review every five years. we'll ask kurt to provide additional context, and then, we'll turn it over to andrew. >> thank you. we hired andrew about 2.5 years ago, and i don't know that we intended to have six items presented at one board meeting. so the consequence, andrew has a lot of work to be done leading up to the october board meeting. i do want to acknowledge the vost amount of work that he did and that adrian did. adrian only joined six weeks ago. i do encourage everyone to read these. we have six different topics. the discussions here are quite thorough. we have one discussion item, five action items. we'll begin with our annual esg
update, which will provide a little bit of sfers update in the e.s.g. space and then provide the three pillars of our e.s.g. program, which are ownership, investments, an area that i think we've made extraordinary progress in across all asset classes at sfers, and then finally, discussion of our collaboration efforts with the public at large. we'll then turn to four action items that both have been our targeted divestment companies which have included tobacco companies, sudan, oil and coal, and we'll end with an update on our climate action plan and
year. and just want to start out, i guess, with a few comments and observations about what's happened more broadly in the e.s.g. discipline in the last year. like everything, it's been an interesting and hectic year between the economic impacts and volatility in the markets due to covid, and the shutdown, the massive social movements calling attention to issues of systemic racism and inequity, and then, more recently, the wildfires in california and throughout the state, all of these things really intersect with a lot of the e.s.g. themes that we look at in the investment process. and given everything, if i had to look at one theme of the year to highlight, i think it
would be the social pillar, the s within e.s.g. has certainly gotten a lot more focus from companies and investors over the last year. i think over a decade, decade and a half of a lot of focus on environmental issues and certainly corporate governance, as we think about worker welfare in the light of expectations around being an essential worker, certainly, employee pay, benefits, issues of diversity and inclusion in the workforce, corporate culture, i think these things have come into much clearer view for a lot of corporations and investors over the last year. and really, instead of turning away from any e.s.g., the efforts, i think we've seen everybody lean into them and realizing even during a period of stress and market stress. these issues are really
important. this continues to come up with our managers, as well, as we talk about it with them. at the same time, you know, climate has still been a big -- a big theme for the year, and the year actually started, interestingly, with a letter to c.e.o.s, where we talked about funding due to climate risk, and how that will affect investments in the economy over the long-term, and black rock, as one example, given their size and an assess manager, black rock updated its voting policies around climate risk. these are meaningful steps that -- that have occurred over this period.
and, you know, corporate actions have also progressed a lot in terms of climate change. you've seen a ton of companies making net-zero commitments by 2050, and these are not just companies that have minimal environmental impact, these are companies like shell and b.p., the largest corporations in the u.s. like dominion have made commitments around the upcoming carbon neutral, and greenhouse gas emissions neutral. microsoft went so far as to say that they're going to invest $1 billion to negate their carbon footprint that they've ever invested in the company. i think the social factors have become more and more important. so i'll -- i'll start here with just a reminder of our, you know, e.s.g. beliefs, and a bit
of history of our e.s.g. policy. our core belief is that e.s.g. factors can and do influence outcomes in nearly every investment that we wake, but how they do so is typically w nuanced in each case. we really take what i'd say a principled approach to e.s.g. considerations and not a prescriptive approach to e.s.g. we began the effort quite sometime ago in 1988, when we first had our social investment policies that's evolved a lot to an e.s.g. policy that kurt described has these three pillars of active ownership
where we think about influencing public equity outcomes in our portfolio management, voting our proxies, we integrate e.s.g. considerations into oush manager selection process, and our ongoing relationships with those managers and then e.s.g. collaboration and information, where we work with other stakeholders in the financial community, certainly with our wi beneficiaries to communicate with e.s.g. i'll provide a little bit of an overview of what we've done in 2020. i'll skip over these slides for now, but it's a history of e.s.g. over the last 20 years, if folks want to take a look at that at some point. 2020 here -- and i'll try to
make this screen a bit bigger here so folks can see it. hopefully, that's a bit better. for 2020, i really want to highlight, i guess, four things, four focus areas from the last year. one, bill mentioned we announced the ambition that the trust become net-zero by 2050. this was, you know, an important step in really expanding our view of climt risk among publicly traded oil and gas classes and -- climate risk among publicly traded oil and gas classes and thinking about climate risk that goes much further than just thinking about our exposure to oil and
gas companies. two, we continue to support and expand our engagement on climate risk, where we acted either as a lead engager or even in a supporting role with over 20 companies -- oil and gas companies, utilities companies, where we, you know, sat down with those companies, provided input that shapes policies around decarbonization targets, enhanced transparency around e.s.g. practices. third, we'd like to highlight that we continued to prioritize board diversity, and that was thr through our voting efforts and engagement. we voted against the chair of nominating government committees of roughly 3,000 companies that had fewer than
20% women on the board, and we voted against entire boards where there were no women on the board this year. so those were updates to our voting policy. we continued our engagement efforts through a 30% coalition, and, you know, i think those were very successful in the four companies that we engaged with through those efforts, and we were really asking, you know, those companies, you know, two main things. one was to think about actually adding additional women to their board and then second was to ask them to think about updating their corporate charters to actually implement things like the winnie rule,
which commits them to not commit to adding additional women to their board but considering a diverse search and looking for diverse candidates when doing that search. next, and looking forward a bit, we've joined a partnership with three other california pensions: calstrs, calpers, and lucera. this is a reminder that our efforts are not focused just on gender but on race and ethnicity as we engage with companies, and that's part of our corporate and governance belief, workforces that are reflective of society at large tend to perform better over the longer term. and the fourth area to really talk a bit about is our e.s.g.
investment management pillar. we really deepened our e.s.g. engagement with our own external managers, and this is across asset classes. so not only are we conducting e.s.g. due diligence when we make a new recommendation to invest, but we really have to take a step back on some of our core relationships in the private equity allocation and the absolute return program and have sent questionnaires and engaged in conversation with those managers around their own e.s.g. integration practices, and i think have had some really, really productive conversations there, where we've learned a lot. they've asked for input, and we've learned about how they're shaping their e.s.g. program going forward. we also have, in our public equity program and fixed income program, we've begun a deep dive in engaging with our
managers around climate risk, and that's part of our net-zero by 2050 ambition. a starting point there is we send a details questionnaire around climate risk and then had deep dive conversation around that. again, a lot of really constructive learnings from those engagement efforts, partneri partnering -- the e.s.g. teams partnering with the investment teams. so we'll turn to slide 7 here now, talk a little bit more about other active ownership activities that i didn't just touch on. progress over the last year, you know, started with an update to our learning guidelines. remember where i said we strengthened our voting requirements around board diversity, but other shareholder proposals related to human capital, gender pay gap proposals that come to
shareholder votes, and we took another way that we look at remuneration packages and really revised some of those core aspects to plant a stake in the ground where we believe there should be proper remuneration for proper performance by companies and c.e.o.s. so with respect to that, we ended up voting against 22% pay on [inaudible] proposals, we're continuing to scrutinize excessive executive compensation that's not linked with performance.
in terms of engagement activities, i mentioned those we had with climate risk, with oil and gas companies. we've also engaged some retailers like dick's sporting goods and walmart on firearm retail practices through a partnership that we have with calstrs and other active asset managers. those have been really productive, as well, to think about how do you responsibly and safely participate in retail of firearms? and then, we also had a, you know, several other conversations throughout the year. things ranging from sitting down with pork and beef
processing company to talk about their covid response and worker health and safety, sitting down with a big three audio o automaker to think about their services there, professional lobbying firm around professional lobbying and disclosures. and those are things that we'll do if they arrive if there are particular votes coming up if there's opportunities to partner with other investors on those efforts. we'll now move onto the second pillar here, e.s.g. investment. to some degree, this is the core of our e.s.g. program, supporting the investment teams due diligence ongoing monitoring of our investment manager relationships. as i said, we've really
strengthened that, not only at the due diligence phase, but also, as we think about ongoing relationships that we have with managers, where we may invest fund after funds, and have tried to engage and build relationships around e.s.g. to learn what those practices are and form, you know, our own views of their investment approach and style. [please stand by]
sectors, and you can see this in the chart on the right. the darker lines are our portfolio weight and then the dotted lines are the index weight. so the utilities, materials and energy sector. so we are underweight to sews te sectors, so that's improves our carbon weight. some of the most carbon efficient sectors. so those two factors that underweight and overweight contribute significantly to our reduced carbon footprint. the second thing was at the board's direction we invested $1 billion of our equity portfolio to two sectors that had reduced carbon footprints versus their benchmarks.
that's the goldman sachs strategy and the global equity strategy, both of those have resulted in additional carbon intensity reductions against our benchmark. one thing interestingly that we looked at this year was actually, you know, any short positions we had in our public equity portfolio and the carbon footprint associated with that part of the portfolio. and not by design, but as it turns out, our portfolio is overweight, the portfolio is overweight, and this is in aggregate, right, to high carbon sectors, like utilities and materials, and then even within other sectors, there are greater short positions in more carbon intensive companies, and that's true in the real estate sector, it's true in the technology sector. so this is, you know, further
reducing our exposure to carbon risk, if you want to think of it that way, through those positions. if we look beyond the public equity and fixed income portfolio, we're really limited by data. but one thing we've tried to do in the report is show from a sector perspective our allocation to the three most carbon intensive sectors, and in aggregate, if we look at our overall, the overall sfers portfolio and compare that to a 70/30 portfolio, we are significantly underweight utilities and materials and have [indiscernible] sustained energy exposure. if you think of using assumptions and averages, we would have a much lower aggregate footprint, most likely in the absence of data which doesn't exist to just think about exposure there.
every project we do, we look at our investment exclusions that we've put in place since 1998 with tobacco and we've works with msci to license some customized indices so we can have some sort of model on what impact those may have on planned returns and risks since we put those in place. basically what we do is we licence an index that excludes the companies that we've excluded. we compare that to the generic msci index and we assume that any gains or losses were reinvested with, you know, the same allocation that we had to each asset class. over time, you know, our
portfolios shifted, of course, over those many years for different reasons. so this relies on some assumptions to get a good sense of, as we said, a positive or negative impact. as you can see, in aggregate it's been negative. that's been really driven just by tobacco exclusion that we've had in place since 1998 that was, you know, sometimes positive, sometimes negative, but really just due to compounding effects, mostly that in aggregate has cost about $88 million over that time period. in aggregate, the other exclusions can be said to be negligible or contributed positively. we have assumed over the last year, you know, a negligible but positive interaction from all of those exclusions that you can see in that final column year
coordinate the climate 100 initiative and the carbon asset working group we participate. i've mentioned the 30% coalition and the council of institutional investors is a long-time membership that we've maintained and we participate in their events and take advantage of their resources. as well, i've also mentioned the principles for responsivelyian firearms industry. -- civilian firearms industry. we continue to do transparent and conduct esg reporting through presentations like this, publishing materials, updating earlier in the year or, you know, later if you think about -- our next report on our proxy voting and shareholder activities and we did a policy refresh, as you all recall, last fall and the beginning of this year on the esg policy and the
proxy voting guidelines, and then built out the esg section or reference in the investment policy statement as well. so i will close there, put my first slide up here. but that's the update, program update. i'm happy to answer any questions there dive in. as you know, this is not a voting item. >> commissioner: thanks, andrew. did you have anything to add to that? >> commissioner: maybe just one or two questions. the platform that andrew just described has become a valuable working tool for institutional
investors around the country. in addition, as andrew described, in each of our investment recommendations now for quite some time we've been including an esg assessment in every recommendation, and also over time we've seen the volume and the depth of that assessment has also increased [indiscernible]. so you will have seen those now for probably the better part of a year. thank you. >> i would like to ask a question of andrew. >> please. [indiscernible]. >> andrew, how would you describe how the state of esg is -- you know, we've gone through periods where there's been a lot of activism, but
where would you say that -- the movement has grown to or settled at right now and moving forward are we making good progress? are we on good lines? are we in conflict? will we have any conflicts or will we have more collaboration moving forward here? >> yeah, i think -- i would say more of the latter. it's a great, great question. but certainly i think, you know, particularly last year where i think investor expectations and corporate expectations are around a lot of esg practices, those social factors that i mentioned but also the climate action you're seeing, sort of in the absence of any regulation, shows a lot of alignment with, you know, investor views and corporate views and actions. so it has been highly
collaborative. again, there have been fewer shareholder proposals introduced at public companies over the last year, and a lot of this is actually, you know, due to the fact that companies are willing to engage with investors constructively in order to address esg concerns, which is really good to see. we've also seen an explosion of esg efforts outside of the public equity and fixed income asset classes. so, you know, the private equity industry is doing a lot to address esg factors in their own portfolios, but also looking internally at their own firms and talking about, you know, how to think about esg risks, opportunities there, in the way that they run their own firms. so i would say, you know, a lot more work to do on a lot of challenging issues, but very
constructive, in my view. >> thank you. yesterday i had the opportunity to be able to watch for about an hour and 21 minutes the apple rollout, apple's rollout of their new products. and one of the things i was impressed with is that they focused on their new buildings, apple campuses and their production lines that they were carbon neutral, they said, we're -- one point was 450 tons of carbon monoxide, the equivalent of taking 10,000 cars or more. they made some points about what products they're using to produce their phones, et cetera. so i was pretty impressed. do you think that's -- would you say that's a common thing? is that special to apple, or is that a common thing for some of the other companies?
>> with the hesitation of sort of commenting on whether a company is a leader or not, i think -- i will say that there are a set of companies that are sort of taking -- leading efforts to integrate these considerations into product design and building management and workforce management. i think, you know, as i sort of alluded to, the tech industry has really planted a stake in the ground. many of the largest tech companies have made commitments around carbon neutrality, and that includes their products, their supply chains, their own building operations, and we've seen this i think, you know, in response to a couple of things: one is their own employees and wanting to be a good corporate citizen to attract and maintain the best employees, as more and more employees care about these issues and the corporations that
they work for and, two, that the customer base, you know, customers have access to more and better data on this, they care about it, they're willing to make purchasing decisions around esg-related issues. and then third is just, you know, resource constraints. you know, a company like apple relies on a lot of, you know, materials from that can be resource constrained and still operating efficiently using recycling, securing access to materials like cobalt that have esg [indiscernible] is important for them. >> thank you. adrian? >> commissioners, you have questions for andrew on the
paragraph how it's actually groundbreaking in many respects compared to other pension plans and i think those kinds of things are important just to make sure that we put that message out there. >> certainly. yeah, i'm happy to, if you have ideas on that, i'm happy to take that input. >> andrew, i want you to know, i've sent this document to all
five of my advisors as examples of what a well-managed plan does with esg. it's a very well-done document. >> that's great. andrew, i wanted to ask, and it's good to see that the 22 different [indiscernible] because i notice something that [indiscernible] for the last five or six years and i know it's been a huge component of the push. has there been resistance, though, on that front? because it moves but it moves slowly. but i'm not sure what's happening there. >> there have not -- you know, there continues to be a pretty low rate of [indiscernible] for executive compensation, and i think it's been perhaps less of an investor focus area over the last several years. i think what will be interesting to think about is, you know,
going forward into this 2021 proxy season is executive compensation in light of, you know, covid and layoffs and restructuring, and i think, you know, you will see probably pushback from investors around compensation that seems -- you know, may be in line with performance over the past year period, but also, you know, when wages have been cut or layoffs occurred with workers. >> exactly. yes, i would be curious to see data around that. the other thing you talked about was the climate action 100 and [indiscernible] and various initiatives. have we seen any of our other managers join this, the climate action 100? i know [indiscernible] was probably one of the first instances. i would hope more managers would
be feeling that. >> we do have other managers that are both participants. we have other managers who have expressed interest and are considering participating and then we certainly have, you know, many managers who are engaging with portfolio companies around climate risk but perhaps not formally through that initiative. >> okay. and then my other concern is, we talked about diversity and i like what you've done in terms of the work around that. do we use that same [indiscernible] in terms of rps and other things, do we really apply the sfers criteria for the type of diversity we're looking for across the board, including [indiscernible] and other sectors? >> i can't fully comment on that. i guess what i can say is, you
know, there is proposition 209 in place in california -- >> i know. that's why i -- >> i know. up to a vote, that's in november. but we do not -- i want to make clear that we do not ask about diversity characteristics when we send out an rfp or enter a new relationship or a new contract with an external party. we're wanting to be not running afoul of (distortion). >> -- the board is engaging, we do request form 1 information which basically gives demographic as well as gender and racial diversity within an organization, which is part of the consideration. certainly we've never -- again,
[indiscernible] can't target it but as we send out an rfp for consultants, we would request that information. we would certainly consider it. a manager's selection process is obviously a different process. >> right, exactly. and then my last question is on part of the oil and gas piece, and i want to check if fracking is part of that piece because i don't see that in there, if they address fracking as part of oil and gas. >> we do not specifically differentiate between the type of extraction technology that a firm is using. so within our portfolio, you
know, we have exposure to companies with all types of resources, and many of those, particularly in north america, right, are fracking. >> and they usually disclose it in lots of cases. that's why -- >> yes. >> any other questions for andrew? andrew, bill, i'll turn it back to you. but, andrew, thank you. that was very comprehensive. and i do agree with carmen, there should be a way that others should know about the work that we're doing around esg because i think it's important because it's one of the issues that come up at the board of supervisors and other places what sfers is doing on esg. so we have to figure out a way to get some of the messaging out so they'll know -- because i think you've done a lot of work to really make sfers in the top
tier when it comes to esg and the types of services [indiscernible]. >> we could certainly highlight it in our annual report. we have an investment [indiscernible] but certainly for the public consumption we could ask andrew to basically update us on all of the activities that were done during the year and include that very specifically as a section of our annual report and that at least would be a start. we've issued press releases, and press releases are out there. but i think if someone really wants to recommend that they look at what we're doing, maybe the annual report, which should be available online, would be the best place to sort of highlight our activities. >> before we go to the next
item, i want to comment about compensation. it's of special interest to me in the esg suite. i think that is the "s" part is underappreciated. i do think that capitalism and connecting capital and finance needs to work both profitably for institutionals while also delivering better outcomes for people and also that there's work to do and work that should be done at the executive level, better recognizing and rewarding the value of work both on an absolute level, each and every individual, and also in relation to one another. >> i concur with you, bill, on that. that's a conversation you and i
have had many times. that's why i like the focus on what's going on with the investment team on esg and that's why i asked the question as well, [indiscernible] to do something differently to address the "s" in the esg. >> if there are no other board questions or comments, let's move on to the next item. >> open for public comment, right? >> yes. if you have not already done so, please press star 3 to be added to the queue. (inaudible). moderator, are there any callers on the line? >> madam secretary, there are
[indiscernible]. >> thank you. >> (caller): hi, thank you. you sounded almost inaudible, so if everyone who is not speaking could mute their lines, i think that would probably help. my name is judd. i'm a senior [indiscernible] san francisco and sent over five years working with board and staff on making their level of knowledge on climate risk and bringing in experts and data to that effect. i want to thank andrew for all of this work. this is truly night and day from the total inaction from this agency before you brought him on board and it is a truly great body of work by any measure. i also desperately wish this body of work had been kicked off in 2013 or '14 when reams of data and multiple experts were brought to you all. the level of action on this is
not remotely commensurate with the climate emergency. your posture is divorced from science on the carbon budget. it seems like me like 22-year-olds crowding into bars without masks because they know on balance it's other people they're going to injure and kill and not themselves. i'm very glad to hear in this report that staff began development of a climate action plan to work holistically. i would argue it's quite belated and also quite urgent and would love to hear from staff about the time line for its release and presentation to the public. to the board, if this only includes public equities, it will not be a real plan. esg for your public equity and anything goes for your private investments is not separate but equal and it's not a good base for a esg -- (inaudible). what if the city and county were foremost in the country and only
incarcerating 45% of individuals experiencing homelessness within a year. even an elected official would not have that attitude. you would be focused on the real world and what the actual policy outcome is, not in relation to other cities. to that end we need not to see whether we're doing better than -- >> (caller): this is jack. i'm a retiree. i appreciate andrew's report. and i have to say, when i first heard that the portfolio would be net zero by 2050, i thought, well, that's kind of a joke because fossil fuels will be worthless by then. the state has already committed to being carbon neutral by 2045. but i think i came to understand that this is not just talking about getting kid of fossil fuels, you're talking about
climate action 100 and all of the companies and their carbon footprint. so that is really good. i'm really happy to hear that you're doing that. companies like general motors, caterpillar, all of these companies using fuels. we need to get rid of it. that's a great use of our esg resources. i'm not going to be able to stay for the report that's coming up later, but i do have to call your attention to page 12 of the climate risk memo which points out that in the last ten years, the index has gone up by about 90% whereas the energy funds have gone down by about 30%. so it's no wonder that there's only $108 million left of the publicly traded funds. but i would also urge you to look -- well, also the current divestment, $406,000 out of that $108 million, it's less than 1% per year. that's like a 100-year divestment plan. that's way too slow. you have to move that up a whole
lot faster. i'd like you to take a look at the real assets update that came out in july -- it has a lot of energy funds in there too. the climate transition risk that you talk about is to understand and manage risk. okay. understanding it is very simple. science says climate change is caused by fossil fuels and we have to -- that's easy. manage risk. very simple. get out of fossil fuels. so don't think it's so complicated. you've made this way too complex. just get out of fossil fuels. and i do support all you're doing to make sure that we have a net zero company benchmarks. thanks a lot. >> next caller, please. >> (caller): this is david
paige. thank you. i have spoken before and i know the oldtimers remember me and my message isn't really any different than in years past. i want to endorse what the previous callers have said. i'm no fan of engagement. however, if the meat packing companies have improved their worker safety because of any engagement that andrew was talking about, then that's great. and i also want to say thank you to andrew and all of you that are listening. i know you guys work hard and you do good stuff and you're trying to do the best you can. commissioner chu mentioned something really important, which is the universe of people in finance and investment isn't necessarily the same universe as
the people in science and public health. in terms of divesting, as a retiree, you know, i just don't feel morally comfortable with any part of my money going into private prisons, for example. but i appreciate how you guys have divested from tobacco and firearms. so i'm hoping that you're going to, you know, do something radically different than in years past and make a giant change in what you've been doing. here's what i'm proposing: the retirees like myself have been somewhat supportive of the idea that if you -- if it's not against the law and you can make money at it, then let's invest in that. you know, regardless of the esg. regardless of how equitable a
player, a company we have to do business with. well, why don't we send out a message like someone was talking about earlier, not in the annual report or in press releases but with the deposit advice that i get every month. a simple survey saying, you know, andrew could put together something from the report of amnesty international or human rights watch -- >> that is time. [indiscernible]. >> madam secretary, no more callers on the line. >> thank you. hearing no further calls, this item is now closed.
action item 9. >> i would like to make one compliment and i didn't get my microphone on fast enough. (distortion). >> the prime minister of china, mr. xi. very similar to the aspirations document that was recommended that the board adopted or recognize a couple of months ago about this whole useful area about esg and climate improvement. just a coincidence i believe is worth noticing. thank you. (distortion). >> item number 8 action item.
rea(reading item). >> thank you, president bridges. board members, this is the first of five action numbers on esg-related matters, an update on our esg policy [indiscernible]. >> i'll keep my public comments relatively brief for this item. divested from u.s. tobacco companies since 1998, just when the companies were entering the master settlement agreement with the states' attorneys-general. we've updated the list we've recommended for divestment.
in terms of what's happened over the past year, i think we've seen continuing tightening of restrictions on electronic nicotine delivery systems or vaping products or e-cigarettes. actually sales of e-cigarettes have fallen over the year, about 14%, which is more than the decline of traditional cigarettes category. there's actually a decline in traditional cigarettes, it's much less than predicted probably due to some short-term issues like stockpiling during the covid pandemic. i think from a regulatory perspective, you know, fda -- or fda and cdc are moving forward with relabeling requirements. the e-cigarette regulations continue to be implemented and approval processes, you know,
going through. one of the biggest names, j uh-ujuul -- the struggling natuf that category. in terms of updates to our list, they're really pretty minor. they're described on page 2 of the staff memo. we're recommending adding one new e-cigarette company that's pretty lightly traded and we don't hold a position in that company and updating the name of another company and then removing three companies since they've been listed over the past year. like for all of the following members in the appendix we have a list that includes companies reflecting updates in the
[indiscernible]. >> a second? >> second. >> moved by commissioner driscoll and seconded by commissioner chu that we adopt the recommendation to [indiscernible] current policy will [indiscernible] approve a list of restricted companies as outlined in appendix [indiscernible] of the memorandum. madam secretary, public comments, please? >> please press star 3 to be added to the queue. for those already on hold, continue to wait until the system indicates [indiscernible].
>> if kevin [indiscernible]. >> next item, please. >> item number 9 action item targeted divestment in sudan, level iii of sfers esg investment policy. >> board members, this is an update on the board's policy by targeted divestment in sudan. relatively speaking, the experience for the human condition [indiscernible] continues to occur and andrew will provide further context.
andrew? >> thank you, bill. we initially divested from companies operating in sudan in 2006 at the height of the genocide in darfur. over the last, you know, 15 years or so, there's really been progress -- it's slow progress but a march towards peace and stability in the country, and that has really culminated in some changing political stances, particularly from the u.s., towards sudan. president obama and then following through president trump had loosened sanctions placed on sudan. by and large, there still remain, you know, some select sanctionsanctions and sudanese individuals on our state terrorism watchlist. but by and large the major
sanctions have been lifted. last year the former president who was in power during the genocide and there was a coup. there was a sovereignty council which includes some civilians and military leaders on the pathway towards 2022 and they will democratically elect a president. so if you recall in february, we adopted revised criteria for the way that we see and look at companies operating in sudan, where we said that given the forward progress in the country, that we're comfortable remaining invested in certain companies, those that provide things like health care equipment, telecommunication services, power equipment, other goods and services that citizens need and can actually help contribute to positive development and
stabilization, in a way that would be beneficial to citizens. we continue to not invest in companies that provide military equipment or those that were deemed to be complicit in the genocide that occurred in the darfur region. what we do with the remaining set of companies and there's, you know, a large amount of work that adrian was really central in helping with here. in our report is we screened them against their esg management practices and want to really get some comfort that the companies that we've identified that have operations in sudan are mitigating and managing their esg risks there. if we don't get comfort with that, then we may recommend them for investment restriction. the next thing we're really looking for in sudan is the removal of sudan as a designated
state sponsor of terrorism by the u.s. government, and that's the big next step for the country, which is preventing them from receiving meaningful foreign aid and foreign investment. this is something that's actually in place, not due to the darfur genocide but related to the 2000 bombing of the uss cole by al-qaeda and then bombings at u.s. embassies in kenya and tanzania by al-qaeda and that [indiscernible] by the u.s. government that sudan was complicit in those, the country did harbour osama bin laden for a period of time. so that part is actually proceeding. there's been one settlement reached for the uss cole bombing. progress has been made towards the other financial settlements. secretary of state pompeo was in
sudan in august trying to negotiate those and it seems hopeful that that will move forward. so that's the state of play. it's also worth mentioning that [indiscernible] has been brought before the international criminal court in the hague where he's facing charges of crimes against humanity and this is seen as an important step in helping to get justice for the citizens of the country so important that that is also moving forward. we recommend adding three companies to our restricted list here. one is the company petronas that was involved in directly financing militias in south sudan. it's important that there's comfort that esg controls are in place around their corporate
activities and where proceeds from their energy projects are going. and then two other companies due to lack of any disclosure or transparency, risk management didn't feel comfortable that we could get a sense of firmly not putting them on the list. [indiscernible] pages 7 to 9 of the memo and again the list proposes for adoption a list of changes are in the two appendices in that report. i'll pause there. i'm happy to answer any questions on this update. >> commissioners, any questions of andrew on trying to get divestment in sudan, level iii? action item. i'll entertain a motion.
>> i move adoption of the report. >> second? >> it's been moved by commissioner driscoll and seconded by commissioner chu that we adopt the recommendations i in the report (reading action item). madam secretary, please open up the lines for public comment. [indiscernible]. operator, are there any callers on the line? >> madam secretary, there are no callers on the line.
>> i'm muted on my screen but i'm not the controller. now he's muted. >> can you hear me now? [speaking simultaneously] >> can you hear me now? >> yes. >> item number 9. >> thanks, great. >> councilor casciato? >> can you hear me? can you hear me? >> yes. councilor casciato! >> yeah. can you hear me? >> we have five yeses. >> yes. councilor casciato? >> yes.
>> can you hear me? >> yes, i can hear you. yes. yes. >> five yes, sirs. the motion passes. [indiscernible]. >> item number 10, action number. targeted police vehicle investment of firearms and ammunition manufacturing companies and retailers. >> thank you, president bridges. board members, there's been a lot of activity on this item this year. there's been a spike in sales.
a lot of research. two companies are added to the list. one is falling off. and there's also been a lot of engagement efforts as summarized on page 4 of staff's memo. i'll ask andrew to walk through the item. >> thank you, bill. i want to first start and just point out an omission from the tables on page 7 and 8 of two companies that we are recommending to be added to the restricted list this year. >> [indiscernible]. >> okay. they are outlined on page 3 of staff's report and they are first cash and easy corp. and it was my oversight that they did not end up on the list in the appendices. so i want to note that.
any potential motion shouldn't -- it is recommended include those two companies. so going back to the introduction of this item, as bill said, firearms sales are up in the last year, spiked significantly, and, you know, most estimates say that guns sales are up about 100% through 2020 as compared to last year. ammunition sales are up over 100%. i think it is fuelled by a number of different things happening at the same time: the shutdown and sort of need or perception of need for self-protection, social unrest occurring with social protests and, again, a need for
self-protection. and the uncertainty of the election and the outcome of the election, particularly with a biden administration that's proposed, significant gun control regulation. so all of this has resulted in a spike of firearm sales. gun violence and mass shootings continue to occur with a lot of regularity, sadly, throughout the country. there have been almost 500 mass shootings in the u.s. to date, which has already eclipsed the number that occurred in 2019, and this is even with the shutdown for several months. you know, on a regulatory front, as i said, the biden administration is proposing pretty widespread sweeping gun control regulations. of course it remains to be seen which of those may be adopted. in particular, tightening background checks is a focus area, and then cracking down on
online sales or online-facilitated transactions and actually banning those is one of the proposals, as well as a focus on so-called [indiscernible] which are unregistered firearms or actually pieces of firearms that can legally be purchased online and then assembled that don't have an identification number or require any background check to purchase. we have productively engaged, as bill said, with some retailers over the past year. on one hand, you know, dick's sporting goods is to some degree backing away from firearms sales and their whole hunting department in their stores but they continue to implement best-in-class retail practices going above and beyond federal regulations in terms of age limits and background checks. wal-mart is also doing the same. i think, you know, sort of
reading between the lines, i think their belief is that the market is sort of better if they're players in the market and can do it responsibly rather than having transactions occur online or at retail -- or at gun shows where there's fewer regulations, no need for affirmative background checks. they did stop some of their ammunition sales when there was pushback from some of their customers around this, but it looks like they're going to stay the course in terms of their updated policies there. in terms of our recommended updates, the one that is reflected in the table there is smith & wesson brand, which has been spun out of american outdoor brands as a standalone company that will exclusively sell the firearms that are the smith & wesson brands company,
american outdoor brands will no longer be involved in firearms sales but hunting equipment and firearm accessories like storage cases, sight scopes, et cetera. they would fall off our list by criteria, smith & wesson brands and [indiscernible] will be on our list. we're recommending the addition of another trade name, armus, to reflect the same name for a company that's already on our list but more commonly referred to name to provide our managers with, and then, as i said, the addition of two pawn shop operators, easy corp. and first cash, which, you know, engage in both new firearms sales but also pawning of firearms. we've been unable to determine that they restrict the sale of firearms that are illegal for sale in california, so assault-style weapons, so
therefore we are recommending that until -- or unless and until policies are put in place, clear policies and communication of those by those companies, that we would add those to the restricted list as well. so i'll pause there. happy to answer any questions. hopefully the omissions from those tables are clear but can reiterate those again, if that's helpful. >> thanks, andrew. are there any questions of andrew? this is an action item. are there any questions for him at this time? if not, i'll initiate a motion on staff's recommendation.
>> thank you. commissioner chu? >> casciato, second. >> thank you, commissioner casciato. >> it has been moved and seconded that we adopt the recommendation for the board ... and the list of restricted companies identified in appendix b. madam secretary, please open the lines for public comment. >> thank you. callers, if you have not already done so, please press star 3 to be added to the queue. for those already on hold, please continue to wait until the system indicates you have been unmuted. moderators, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no callers, public comment is now closed. >> thank you, madam secretary.
again, it's been moved by commissioner chu and seconded by commissioner casciato, roll col, col -- roll call, please. >> pardon me, president bridges. i would like to amend the recommendation to include those two additional companies that i mentioned. i don't know if that requires that being specified in the motion. those two companies are currently not on appendix b. they're mentioned in the moment but don't appear on app deck apb in the report. >> i'll amend to include the staff's recommendation plus the two amendments that andrew articulated (distortion). >> the seconder concurs. >> thank you, commissioner chu and commissioner casciato. so we will amend the motion to
include the two additional companies that staff memo does not include but was recommended by staff. madam secretary, roll call vote, please. [roll call] >> the motion passes. five ayes. >> thank you, madam secretary. next item, please. >> item number 11 action item: targeted divestment of thermal coal companies: level iii of
sfers esg investment policy. >> thank you. members, good news here for the most part. coal demand has declined over the past six years and this past year is a record steady decline. coal demand is significantly [indiscernible] both in the u.s. and europe. there are five new companies being added to the list, none falling off, so there should now be a total of 46. i'm going to ask andrew to walk us through the item in detail. >> thank you, bill. so as bill said, you know, i think the trajectory of thermal coal has been on over the last several years continues to stay true in terms of demand decreasing, prices decreasing, coal demand continues to fall in
the u.s. and europe, as bill said. you know, through the retirement of coal power assets. i think interestingly china's announcement to be net carbon neutral by 2060, you know, as the largest consumer of thermal coal will be interesting to see the impact of that announcement and how that strategy plays out on the thermal coal market. too early to say specifically. no changes in terms of our recommendation here. president trump's 2016 campaign promise to revitalize the industry hasn't really been seen as widely effective and doing much more employment or coal prices in the u.s. we continue to reaffirm the recommendation that we stay divested from companies that get a majority of their revenue from thermal coal, and, you know, we
last year began to return to look at companies that get a material amount of their revenue from thermal coal. so, in other words, 10 to 50 percent of revenue. and what we were looking for there was, you know, comfort -- we said that we would be comfortable recommending remaining invested in companies that have between 10 and 50 percent of revenue, but have communicated clear plans and are on a pathway to divest and sell off their thermal coal assets in the near term. those that don't or haven't communicated that, then we'd recommend for divestment. so there are a few companies and those we have been in touch with, like anglo american, south 32, contrara energy that do have clear plans or entered into agreements to sell off and fully divest their thermal coal assets. we're not recommending adding those to our restricted list.
but there are a set of companies that we are recommending be restricted but that do fall within that range of revenue and don't have any clear plans to exit the industry. so those are outlined again in appendix a and b in staff's memo. happy to answer any questions. we're going to continue to track -- you know, we want to make sure that the companies that have announced these plans to exit the industry, you know, make good on that to the degree that they can find buyers for these assets, and we'll continue to track companies like glenfor which received an immaterial amount of revenue and an extremely small amount of their ebitda from thermal coal but are on an absolute tonnage basis
still produce a significant amount of thermal coal, continue to track those companies and make any follow-up recommendations in the future. so hopefully pretty clear here but happy to answer any questions. >> thank you, andrew. commissioners -- bill, did you want to say something on this? no? >> no. (distortion). >> commissioners, are there any questions for andrew on this item? it is an action item. if not, i'll entertain a motion on staff's recommendation. >> move [indiscernible].
>> thank you, commissioner driscoll. second? >> i'll second it. >> thank you, commissioners. it's been moved by commissioner driscoll and seconded by commissioners casciato and chu to (reading action item). madam secretary, please open the phone lines to public comment. >> thank you. callers, please press star 3 to be added to the queue. moderator, are there any callers on the line? >> there is one caller on the line. >> thank you. caller, please state your name
and your two minutes begin when you start. thank you. >> (caller)caller, please statee and your two minutes begin when you start >> (caller): okay. can you hear me? >> we can hear you. you may begin >> (caller): sorry about the confusion from bay area and fossil free san francisco. i'm really perplexed. the staff report does not seem to indicate anywhere what the fund's actual exposure in this area is and i don't believe the previous staff report has for those areas either. i would hope that would interest the board. certainly it interests the public. and i'm perplexed it's not being presented. the discussed changes you all are making to these lists are
only part of the picture. without you indicating your actual holdings and preferably a before and after of how that reflects your positions, these lists are somewhat detached from the management of the fund. so it's concerning that i can't tell from the staff report how much the fund is invested in thermal coal, notwithstanding these changes that you're making and that the board has not asked about those questions. lastly, i really urge you to move to an absolute tonnage basis with coal and not percentage of revenues. it's the coal that matters. it's the coal that particularly offends the esg policy, not the money. so as a thought experiment, what if amazon or apple went into tobacco or guns or suicide machines? ultimately the size of those companies would ensure that the percentage of revenue from these abhorrent products would be low, would be below whatever threshold you would set. it shows that revenue threshold
is a absolutely artefactual metric to use when you're talking about these concerns. ultimately if something is an esg concern, it is a quality and not a quantity. and so we have really been asking for this for four to six years, but you can move to a percentage -- excuse me, a raw amount of coal produced metric as opposed to percent revenue metric. that would be meaningful, and we urge you to make that case today, please. thank you very much. >> thank you for your call. moderator, are there any further calls? >> madam secretary, there are no more callers on the line. >> thank you. [indiscernible]. >> thank you, madam secretary. again, it was moved by commissioner driscoll and seconded by commissioner
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