Disappointment at 'business as usual' as Shropshire County Pension Fund to continue investing in fossil fuel firms
A campaign group that wants the Shropshire County Pension Fund to divest from polluting fossil fuels says it is disappointed that it seem to be “business as usual”.
In July 2020, Shropshire Council resolved to ask its pension fund committee to divest from fossil fuels within three years. This was driven by the council’s declared climate emergency and its commitment to net zero by 2030, as well as concerns about the financial risks of fossil fuel investments.
However, the committee voted against the request, instead choosing to focus on engagement with companies and integrating Environmental, Social and Governance (ESG) factors into its strategy, rather than a blanket divestment.
As of May this year Shropshire Council is run by the Liberal Democrats, with the Pensions Committee chaired by Liberal Democrat councillor Gary Groves.
At a meeting on Friday (September 19), Joanna Blackman, from Fossil Free Shropshire, asked if the new committee would commit to divesting the fund from fossil fuel companies which are not aligned to the Paris Agreement, a legally binding international treaty to address climate change.
“Today, the fund remains invested in companies that are directly responsible for pushing our climate towards collapse with huge implications for Shropshire as well as the rest of the world,” said Ms Blackman.
“The Liberal Democrats have a long history of supporting divestment from fossil fuels in pension funds. This includes initiatives and efforts by individual councillors and groups like the Association of Liberal Democrat Councillors and Campaigners (ALDC) to encourage councils to stop investing in fossil fuels.”
In response, Peter Chadderton, pensions investment and responsible investment manager, said: “The Pensions Committee is an apolitical committee and all members have been made aware of this position as part of their induction.
“The Local Government Pension Scheme is set out in legislation and members are required to act in the best interests of the fund.
“The fund provides committee members with full training on both the pension’s regulations as set out by the Pensions Regulator to ensure they are able to meet the objectives set out in the terms of reference in the Government’s compliance Statement.
“The fund has a transparent strategy in place to reach net zero by 2050 in line with the Paris Agreement on climate change. This strategy is regularly reviewed and the fund issues updates on climate impacts of investments annually each year.
“The latest climate risk report in November 2024 shows that the fund, through responsible investment practices, has reduced its carbon footprint, measured by normalised finance emissions, by 63.1 per cent since 2020 and 62.9 per cent on a weighted average carbon intensity basis.”
Fossil Free Shropshire member Jamie Russell said that he hoped the new administration would mark a sea change, especially as the Lib Dems were keen supporters of divestment when the Conservatives were in charge.
“However, it appears to be business as usual,” he said.
“We learned that the committee intends to keep the fund invested in companies like BP and Shell – companies that are drilling for new oil and gas with devastating consequences for communities across Shropshire that are being hit by drought, flooding, and rising temperatures.”
