Bid to divest pensions from fossil fuel investments fails

A call for advisers of the Fife Pension Fund to consider divesting from fossil fuel investments has been rejected by councillors.

The region’s Liberal Democrat group had sought a commitment from Fife Council to prepare a detailed briefing on fossil fuel investments which would give elected members a clear understanding of the rationale behind any decision to continue to invest in, or disinvest from, fossil fuels.

They argued that continued investment in fossil fuel companies was “ethically wrong and financially risky”, adding that a responsible investment strategy should ensure any risks are properly considered, assessed and mitigated but councillors voted 55 to six to knock back that notion, instead affirming the council’s confidence in the Trustees of the Fife Pensions Fund to discharge their duties appropriately.

A report by Common Weal, Unison Scotland and Friends of the Earth Scotland last year suggested that Scottish council were risking their pension funds by investing heavily in companies most responsible for climate change.

Figures suggested that a staggering £1.7 billion has been invested in fossil fuels by Scottish council pension funds.

In 2017, Fife was said to have invested £89.6 million in fossil fuel companies, although that was only around a tenth of what the likes of Strathclyde had committed.

The councillors heard that Fife Council’s superannuation and pensions sub-committee works to a set of investment principles to ensure investment managers consider the social, environmental and ethical policies of companies in which they invest.