Councillors in East Yorkshire voted unanimously this afternoon for a review of pension fund investments away from fossil fuels
A motion, by Cllr Andy walker, of the Yorkshire Party, called for the review to halt all new fossil fuel investments and fully divest from existing fossil fuel funds within five years.
Cllr Walker told a full meeting of East Riding of Yorkshire Council:
“It is crazy that our pensions are investing in fossil fuels when they are the very things that are jeopardising what we are saving for. These words from David Attenborough in 2020 are still relevant to the council today.”
He said his motion was not a radical proposal. Many multi-billion investors had already walked away from fossil fuels, he said.
Pension funds were responsible for providing pensions for a liveable world. But he said:
“What is the point of providing money if you can’t breathe the air or drink the water?”
East Riding of Yorkshire Council administers the East Yorkshire Pension Fund on behalf of more than 320 employers in the county.
The fund currently invests 2% of its £6bn value in 10 fossil fuels companies. These include BP, Shell, Saudi Aramco, PetroChina and a former investment in Gazprom.
Cllr Denis Healy, liberal democrat, who seconded today’s motion, said:
“Local pension investment in fossil fuels is fuelling climate change, contradicting local commitments to tackling climate change, as sadly it is here in the East Riding. And if that wasn’t bad enough it is also putting members’ pensions in jeopardy as fossil fuel investments now pose a dangerous long-term financial risk to investors.”
He said it was more than two years since the council declared a climate emergency:
“[The motion] is not a big ask but at least it shows that this council’s [declaration] of a climate emergency is more than a piece of paper to make us feel good about ourselves and it shows that we have done something genuinely meaningful to mitigate against global catastrophic warming.”
Cllr Nigel Wilkinson, Conservative, chair of the pensions committee, said the best strategy for the pension fund was to continue with its investment strategy with an open mind. He said:
“the world and the East Riding of Yorkshire is still heavily dependent on oil and gas”.
But he said the council was tackling climate change by switching to electric vehicles and LED lights and insulating council houses.
Cllr Linda Johnson, Lib Dem, said:
“It seems to me a contradiction when we produce a comprehensive strategy for rapid decarbonisation yet we continue to invest, even a small amount, in the main cause of climate change. We recognise the leadership role we have yet we don’t use that privileged position to do what we really need to do.”
Cllr Phillip Redshaw, Lib Dem, said fossil fuels would increasingly become stigmatised:
“Green energy is on the march. Divestment by 2028 will demonstrate that we, as a council, recognise that fact.”
Cllr John Holtby, Conservative, said the fund looked after the pensions of more than 100,000 members. If it divested from industries that gave a good return, it would have to replace them with something else, or make up the shortfall, he said.
Cllr Steve Gallant, Labour, said East Riding of Yorkshire was one of the last councils in the UK to recognise a climate emergency but it was one of the regions most at risk.
Text of motion
“This Council resolves:
To recommend that the East Riding of Yorkshire Council Pension Fund
Committee reviews its Pension Investment Strategy with the aim of:
- Halting any and all new investments in fossil fuels.
- Committing to having fully divested from existing fossil fuel funds including
direct ownership as well as any commingled funds that include fossil fuels,
public equities and corporate bonds by May 2028 with the majority achieved
within the four-year term of this Council. - Setting out an approach to quantify and address risks arising from climate
change which may affect all other investments. - Actively seeking investments in companies that seek to reduce greenhouse gas
emissions and minimise climate risk.”
DRILL OR DROP? 
Hmm, didn’t Maxwell decide he knew where his workers pension investments should be made??
Not to worry, they can always plonk the money into the world’s largest supplier of wind turbines (no 4)-that just had $8b wiped off their value earlier this week.
Wonder who it is who has to top up the pension funds if and when they go pear shaped?
Oops.
I note that a chunk of the world’s largest supplier of wind turbines has now been “relocated”, in an attempt to minimize the damage. Guess where it has been put? In their Pension Fund! Maybe not a stranded asset, maybe gasping for breath liability?
MARTIN ,
I take note of your sarcastic comment , but as usual , your OPINIONS ” are misguided and void of any evidence .
Just more wild Off-The-Cuff Collywaffle
Green Energy is a much better investment for your pension funds ” NOW ”
https://balkangreenenergynews.com/renewables-are-several-times-more-profitable-than-fossil-fuels/#:~:text=%E2%80%9COur%20research%20demonstrates%20that%20all,total%20investment%20is%20still%20lagging.
MARTIN ,
Why won’t you discuss the SERIOUS dangers of Fracking ????
What about Fracking and ” THE DIRTY DOZEN ” ????
I’ve asked you a 100 + times , but you pretend you’ve not seen my question…. Let’s talk about these serious , proven dangers .
It looks like China can see the benefits of Green Energy . Just look at how they’re racing ahead , outperforming their own ambitious targets …. They certainly can see a major advantage here . Green Energy is certainly worth a consideration for your pension funds ,
https://www.theguardian.com/world/2023/jun/29/china-wind-solar-power-global-renewable-energy-leader
Well, indeed it is Jack-if you are the one making the decision for yourself.
Having seen your nonsense about the “merits” of PFI for £200B of new nuclear, I would certainly not be happy if you were making such decisions, on my behalf. Paid For by Infants is hardly my idea of a good way to consider my grandchildren.
I suspect PFI comes within your normal sphere of ignorance, Jack, but you can research what it is all about. I can kindly offer you a start: It is a not so cunning way of funding something that is so expensive the tax payer would reject, passing the buck-lots and lots of them-to following generations with a huge amount of extras added.
Then there is the £52B project to host GDFs (geological disposal facility). Wonder how those will be funded? I await with some trepidation to observe your best weird and wonderful suggestion. Void of evidence? To yourself, Jack, but you can easily remedy. Reuters have been following the wind turbine debacle, as have a number of other reputable sources.
No, I have not pretended to having not seen it. I have clearly stated that your new packaging for the rejected product still doesn’t appeal. Have you engaged yet with the dirty dozen, and more, that is there for electricity distribution in USA?
Just to cheer you up, Jack, I noticed yesterday £12.60 expenditure on my Barclaycard bill for….the NT! I had to think about when and where and then it came to me-coffee and cake for three of us. Ironically, the same day I had tried to take my grandson into a cathedral for him to wonder at the architecture to find it would cost a lot more than the £12.60 to do so. Fortunately, a kind lady waived the fee in exchange for some change into the collection box. Maybe the Church might do well to focus a bit more on their investments and then might find they are not charging such large amounts of money for access?
MARTIN ,
I’ve asked you a 100+ times before .
Again I ask , you prove £200 bn of UK Taxpayers money will be used , instead of money from private investors
Failure to do so , will render your comments pointless , irrelevant , misleading and pure Collywaffle
What we do know at this moment is that EDF are investing £ BILLIONS of their OWN money in to UK Nuclear power .
https://www.edfenergy.com/about/nuclear#:~:text=EDF%20is%20leading%20the%20UK%27s,currently%20available%20to%20the%20UK.
MARTIN , why won’t you discuss the highly toxic dangers of Fracking ???????? Why won’t you discuss Fracking and THE DIRTY DOZEN ???????
Oh dear Jack, so you just have shown the clarity I provided in my previous post was a mystery to yourself! You can ask the question another few times, you have been provided with the answer, yet you seem unable to grasp that it was an answer!
I am sorry that it was Jack, but it may have been better under such circumstances to do a bit of research and acquaint yourself with what should be known by most UK tax payers, or if not, easily found out.
I suggest that answers your many question marks. It really is like discussing with someone who is just intent on showing how little they know about so much, whilst having no intention of learning anything. I was going to go full Churchill and adding to so many, but even you have already remarked most have already given up engaging.
However, I do believe in giving every opportunity for people to improve their knowledge, so you can do some research on PFIs and then see the hole you have dug.
Call me old fashioned, but shouldn’t the investment policy of the pension fund be driven by financial experts acting on the wishes and best interests of its 100,000 members, rather than being pushed in a political or ideological direction by 59 councillors, who may or may not be members of said pension fund. In the event of a shortfall following this motion, I hope pension fund members will seek recompense from those responsible.
Unanimously driven by the woke brigade! You Investment to create value for your clients, personal and a earn a good return! This has been a deceit to their constituents!
Those who don’t understand the energy industry, are Brainwashed!