Harborough District Council calls for pension scheme to stop investing in fossil fuels

Harborough District Council is calling for the local government pension scheme to stop investing in fossil fuels.

The authority is a member of the Leicestershire Local Government Pension Scheme – which is run on behalf of eight local councils by Leicestershire County Council.

A motion was recently passed by the district council calling for a review of the scheme’s strategies to rule out new investments in fossil fuel producing companies.

It comes after recent data revealed the scheme has some £200million invested in companies which produce fossil fuels.

The motion said: “Recognising that fossil fuel investments should be considered as part of the council’s ‘carbon footprint’ and divesting by the pension scheme is one of the most impactful steps we can take to reduce our impact on our community and the world.”

It is now asking for the local pension scheme to immediately stop new investment in the top 200 publicly traded fossil fuel companies and divest from direct ownership, and any commingled funds within three to four years.

The authority will ask that the scheme seeks to invest in companies that will reduce greenhouse gas emissions and minimise climate risk.

Harborough District Council environment and climate change spokesman Cllr Woodiwiss said: “As a council we take our netzero commitments seriously and as most of the Leicestershire councils, including Harborough District Council, have declared a climate emergency, it is not in keeping with this for our pension fund to continue to invest in fossil fuels.”

Leicester City Council, Hinckley and Bosworth Borough, Charnwood Borough and Oadby and Wigston Borough have also passed motions calling on the scheme to stop the investments.

Campaign group LeicsDivest say along with fossil fuels the scheme is also investing in drilling in the Amazon and fracking.

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 for Leicestershire County Council Pension Fund said: “We are committed to playing our part in tackling climate change. Over 2022 and early 2023 we gave all scheme members and employers the opportunity to engage in developing the Fund’s first 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 responsibly reduce investments in fossil fuel companies and increase exposure to ‘climate solutions’ - something we’ve been doing every year since 2019, before the Fund implemented a formal net zero strategy.

“We are also engaging with and challenging these companies to move their businesses towards net zero through our voting rights. 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.