Staffordshire County Council urged to rethink fossil fuel pension fund investments
A community leader has called for local authorities in Staffordshire to rethink pension scheme investments in fossil fuel companies as part of their actions to tackle climate change.
Around £200 million is invested in fossil fuels by Staffordshire County Council’s pension fund through the Local Government Pension Scheme, Tony Pearce, Stafford Borough Council’s sole Green Party member, has said.
At a meeting on Tuesday he urged fellow borough councillors to support a motion calling on the county authority to turn away from fossil fuel investment and develop a responsible investment policy
He has also proposed that the borough council should develop its own Responsible Investment Policy, which rules out new investments in fossil fuel companies.
Councillor Pearce said: “Staffordshire County Council Pension fund has around £200m invested in fossil fuels via the Local Government Pension Scheme.
“There is increased emphasis by the UK government on showing global climate leadership, especially in relation to finance. Divesting our pension is a clear and meaningful action that can be taken at a local government level
“Fossil fuel investments are financially risky as a result of both the Covid-19 pandemic and the global transition to a more sustainable economic and environmental model. They are now being consistently out-performed by renewables.
“Fossil fuel investments should be considered as part of the council’s ‘carbon footprint’ and divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.”
A council solicitor told the meeting that the matter would need to be referred to the cabinet if the motion was approved because the proposals would have financial implications for the authority.
But Councillor Pearce’s motion failed to gain enough support from fellow members to be passed.
Staffordshire County Council’s Pensions Committee is due to consider climate reports, a climate change roadmap and a climate change strategy at its meeting on Friday.
Councillor Mike Sutherland, chair of the pensions committee at Staffordshire County Council said: “Being a responsible investor and engaging with the companies in which the pension fund invests, on issues around climate change, is something we are increasingly focusing on.
“Our pension fund has a duty to ensure that it provides the best financial return for its members and in doing so, will regularly review its investments to ensure they can do that.
“The pensions committee is looking to invest more sustainably and reduce the fund’s carbon footprint and will shortly be asked to approve a climate change strategy for the fund. If approved, this will look to reduce the fund’s carbon footprint by 50-60 pre cent by 2030, and to net-zero by 2050, in line with the 2015 COP21 Paris Agreement.
“It will also aim to reduce exposure to fossil fuels, which is currently only a very small part of the fund’s investments, even further.”
