Fossil Fuel Debate

Chicago Teachers Pension Fund Continues to Punt on Fossil Fuel 

By Jim Vail

Newly elected Teacher Trustee Viktor Ochoa

The Chicago Teachers Pension Fund CTPF debated once again about divesting from fossil fuels and agreed to send the proposal to the investment committee to further study if such a profitable venture is worth sacrificing on behalf of the environment.

The Trustees noted that fossil fuel investments are very profitable, earning up to 30 percent returns.

Newly elected Teacher Trustee Viktor Ochoa said he cares about the environment because he drives a Prius - a hybrid car that relies less on gasoline than regular cars - and hopes to own an electric car. He like many other trustees is leery of divesting from fossil fuels.

"How do we do this thoughtfully," Ochoa said. "We have a fiduciary responsibility to our retirees."

"We're educators and we need to educate others how this affects the world," newly elected Teacher Trustee Quentin Washington said. "How can we leverage our investments. We need to encourage companies to go green who are looking to lower our carbon footprint."

Teacher Trustee Jacqueline Price-Ward said one way the fund is leveraging its investments to help the environment is by encouraging one company that is working in Aurora to also work with the Chicago Public Schools to help buildings switch to clean energy.

The CTPF passed a resolution at its October board meeting that recommended the pension board formalize a commitment to study divesting in a way that is practical and prudent and report back to the board. Investment Chair Phil Weiss had objected to the resolution by stating that this proposal should first be studied by the investment committee.

The fossil fuel debate was a political issue that Core, which won three of the five trustee positions in the last election, used to promote their goal of encouraging the fund to divest from fossil fuels that harm the Earth and contribute to global warming. The Core leadership got a fossil fuels resolution passed in the House of Delegates to encourage the pension board to divest from the fossil fuel sector.