San Francisco City & County Employees' Retirement System added more restricted companies that derive significant revenue from thermal coal mining, as well as those involved in tobacco-related activities and manufacturers and retailers of firearms and ammunition.
The $36.6 billion pension fund's board on Wednesday approved recommendations by Andrew Collins, director of ESG investing, and Adrienne von Schulthess, security analyst, ESG investing, spokesman Stephen Worsfold, SFERS spokesman, in an email.
Among thermal coal companies, staff and MSCI ESG Research identified Thungela Resources Ltd. and PT ABM Investama Tbk as two new companies that derive more than 50% of their revenue from thermal-coal mining, and the board approved the addition of the two companies to the pension fund's restricted list. SFERS is not currently invested with either company.
SFERS has a list of 46 companies restricted because of their thermal coal involvement, 20 of which continue to generate more than 50% of revenues from thermal coal, said Mr. Collins and Ms. von Schulthess in a memo included with board meeting materials.
Among firearms and ammunition manufacturers and retailers, the board approved adding to its restricted list Academy Sports & Outdoors Inc., which became publicly traded in October 2020; Ceska zbrojovka Group SE following its 2021 purchase of gun manufacturer Colt Holding Co. LLC; and pistol and rifle manufacturer H&K AG. The only company to which SFERS had any prior exposure is Academy Sports & Outdoors, which totaled slightly over $208,000 as of June 30.
The board also approved continuing engagement with Dick's Sporting Goods Inc., Walmart Inc., Firstcash Inc. and EZCorp Inc. concerning their firearms retail practices.
SFERS has a total of 17 companies involved with firearm and ammunition manufacturing and retailing on its restricted list.
Among tobacco companies, the board approved the addition of Performance Food Group Co., which MSCI estimated derives 17% of its revenue from U.S. tobacco distribution. It also approved the removal from its restricted list of BOTS Inc., which has discontinued operations in e-cigarette markets; Gilla Inc., because the SEC revoked its registration; and Core-Mark Holding Co., because of its acquisition by Performance Food Group .
SFERS has a total of 17 tobacco-associated companies on its restricted list.