Campaigners hit out at Leicestershire Local Government Pension Scheme for investing in companies producing fossil fuels

Campaigners have hit out at Leicestershire Local Government Pension Scheme for investing in companies producing fossil fuels.

New data has revealed the Leicestershire Local Government Pension Scheme (LLGPS) has some £200million invested in companies which produce fossil fuels.

The scheme is run on behalf of eight local councils by Leicestershire County Council.

But Leicester City Council, Hinckley and Bosworth Borough, Charnwood Borough and Oadby and Wigston Borough have so far passed motions calling on it to stop the investments.

Campaign group LeicsDivest – part of Climate Action Leicester and Leicestershire – say along with fossil fuels the scheme is also investing in drilling in the Amazon and fracking. The group says it expects more local councils will pass motions by the end of the year calling on the investments to stop.

LeicsDivest spokeswoman Zina Zelter said: “The main employers in this pension scheme are our local councils and they are increasingly saying that they don’t want their money invested in climate wreaking fossil fuel producers.

“The members of the scheme who pay into it and draw pensions have already made it clear they want their pension scheme to address climate change.

“This new data shows that while other pension schemes move in the right direction, ours doing the complete opposite. So at what point are they going to start listening to their members and employers, for who they run this pension scheme, and stop supporting the fossil fuel industry by investing in it?”

LLGPS member Jill Fisher added: “I was horrified to find out the Fund still has £202million invested in fossil fuel producers and is investing in some of the dirtiest production in the world. Including tar sands, fracking and drilling in the Amazon.

“As a member of the scheme I am worried about it investing in assets which are increasingly risky as the world moves away from fossil fuels. As a grandmother I am deeply worried about what these investments mean for our environment and the future world my grandchildren will have to live in.

“My pension scheme could be making a positive contribution to a better world for everyone. Instead, it’s choosing to contribute to the problem. I don’t support this.”

But the pension fund says it is working to reduce its fossil fuel investments and aims to become net zero over the next 27 years.

A spokeswoman said: “We are committed to playing our part in tackling climate change. Over the last year we gave all scheme members and employers the opportunity to engage in developing the Fund’s Net Zero Climate Strategy.

“Responses showed scheme members and employers support the Fund’s proposed path to becoming net zero by 2050, with an ambition for sooner, in a way that ensures financial returns are kept at the right level for over 200 employers, and pay the pensions of over 100,000 scheme members.

“The strategy includes a commitment to reduce investments in fossil fuel companies - something we’ve been doing every year since 2019. We’re also engaging with and challenging these companies to move their businesses towards net zero. This supports both our financial responsibilities, and our net zero goal.”

Employers and scheme members can visit leicsmss.pensiondetails.co.uk to discuss issues with the Fund.