Lawmaker divests from Big Oil after Times investigation

Environmentalist divests from Big Oil after Times investigation of California lawmakers’ stocks

Assemblymember Gail Pellerin celebrates.

Jan. 11, 2024 9:43 AM PT

SACRAMENTO — Assemblymember Gail Pellerin (D-Santa Cruz) has divested from several oil and chemical companies after a Times investigation shed light on surprising stocks owned by the outspoken environmentalist who represents a progressive coastal region in the state Capitol.

Pellerin sold her stock in Exxon Mobil, Shell, Chevron and Dow Chemical, as well as the mining company Freeport-McMoRan, just days after The Times questioned how those investments align with her public commitment to curb climate change, according to a financial disclosure form filed with the Fair Political Practices Commission last month.

When she was elected in 2022, Pellerin was endorsed by environmental organizations such as the Sierra Club and heralded for her environmental goals, including calling for an end to California’s dependence on fossil fuels. She has supported environmental legislation since being elected to the Assembly, including voting for a bill to increase penalties against oil and gas companies that violate regulations.

But a Times analysis of state lawmakers’ financial interests published last month revealed that among the $2 million Pellerin had invested in stocks in 2022 were holdings in companies that are at odds with her political values.

Pellerin’s investments included stock in Freeport-McMoRan, a mining company that was fined millions of dollars by the federal government after an Arizona copper mine allegedly polluted rivers and streams, and Dow Chemical Co., which manufactured napalm the U.S. used as a weapon in the Vietnam War and pesticides scientists have deemed harmful to endangered species.

“My voting record and my 36 years serving my community clearly represent my values. Since the death of my husband five years ago, my financial advisor has worked to align my investments to reflect these values, evident in my latest disclosures,” Pellerin said in a statement on Wednesday. “The LA Times inquiry was timely as we had been divesting since March of last year, according to fiduciary planning.”

Pellerin also sold her stock in the Phillip Morris tobacco company in March 2022, according to her most recent financial disclosure.

Environmental activists circulated The Times report after it was published Dec. 17, expressing concerns about Pellerin’s holdings.

“I really appreciate Pellerin’s quick climate action to adjust her investments,” Hoiyin Ip, a committee chair for Sierra Club California, said Wednesday.

Mike Young, senior political and organizing director for California Environmental Voters, also applauded Pellerin for her divestments. “She’s been a great ally and we certainly would encourage other lawmakers to do the same,” he said.

A third of the members in the California Legislature collectively reported at least $14 million worth of investments in 2022, The Times found. Elected officials and other public employees who influence government decisions are required to report investments including stocks, bonds and business partnerships, along with income, properties and gifts they’ve accepted, on annual statements of economic interests.

The requirement is meant to hold officials accountable for any potential conflicts of interest, but it also reveals when their financial investments differ from how they represent themselves to the public.

Other lawmakers profiled in The Times article did not make significant changes to their stock portfolios, according to disclosure reports some filed in December amid reelection campaigns.

Assemblymember Josh Lowenthal (D-Long Beach), for instance, has not divested from companies such as Meta, which owns Facebook and Instagram, despite being a vocal critic of social media’s potential harm to children.

Times staff writers Queenie Wong and Hannah Wiley contributed to this report.