Newcastle, home of the world’s biggest coal port, has joined the global fossil fuels divestment push after the city’s council voted on Tuesday night to exit holdings in the big four banks if they continue to fund fossil fuels projects.
About 80 per cent of the City of Newcastle Council’s $270 million investment portfolio is held in the big four banks, mostly through term deposits. Those investments are spread evenly across the big four.
But after the council passed a motion on Tuesday night, six votes to five, it will dump holdings in the banks for more “environmentally and socially responsible” institutions when deposits come up for renewal.
This will be done only if the rate of return is comparable with the council’s holdings in the big four and the council’s credit rating criteria is met.