ePetition details
Divest Islington Council Pension Fund from fossil fuels
We welcome Islington Council Pensions Sub-Committee's November 2016 decision to lower the carbon footprint of its equity investments. However, we call upon the council to commit to divest from fossil fuels completely over the next five years. This aim is entirely possible for Islington Council to enact, as explained below:
1. IT IS FINANCIALLY RISKY TO REMAIN INVESTED IN FOSSIL
FUELS.
Climate change is recognised as a material risk to financial return
on investment by a range of experts and organisations. This is
particularly relevant for pension investments which are intended to
provide retirement income in the medium to long term. For example
Citigroup expects US$100 trillion of value to be
‘stranded’ in fossil fuel assets by 2050 if the
investment industry does not move toward a low carbon economy
(A).
2. IT IS IN LINE WITH THE COUNCIL'S FIDUCIARY DUTIES TO
DIVEST.
Legal advice on local government pension schemes’ fiduciary
duties states that they may take environmental considerations into
account when making investment decisions (B). Moreover, if those
environmental considerations are in danger of negatively impacting
investments, they should do so. Where environmental considerations
are taken into account and investments altered accordingly, this
should not be to the detriment of returns. A number of options
exist to provide fossil fuel free investments which enable the
Council to meet these duties.
3. PRECEDENT HAS ALREADY BEEN SET.
Waltham Forest has committed to divest from fossil fuels over the
next five years, joining other respected British institutions such
as the British Medical Association, Guardian Media Group and the
Quakers, alongside many international examples including
France’s public sector ERAPF fund. (C)
4. IT IS RECOMMENDED BY GOVERNING BODIES.
The London Assembly has advised the London Pensions Fund Authority
(LPFA) to divest from coal to protect the city’s economy from
climate change, and has stated that governing bodies of pension
funds are doing too little to prepare for the threat of climate
change. It is reasonable to assume the Assembly would consider it
prudent of Islington to remove fossil fuels from its investment
strategy. (D)
5. IT IS IN LINE WITH ISLINGTON COUNCIL PENSION FUND'S STATEMENT
OF INVESTMENT PRINCIPLES.
Point 25 of which states that “the pensions sub-committee
takes the view that well-managed companies that evaluate and assess
their social and environmental risks are likely to add shareholder
value in the long term more successfully than companies that do not
manage these risks”. Investing in fossil fuel companies is
plainly at odds with this principle as their entire business model
and revenue strategy is predicated on a future scenario which
engenders climate change. Furthermore, point 28 of the SIP states
the pension sub-committee’s membership of the Institutional
Investors Group on Climate Change (IIGCC). Membership of the IIGCC
should be seen as more than just a ‘talking shop’ on
climate and instead a route to action, as its own stated aim of
‘implementation’ demonstrates.
6. REMAINING INVESTED IN FOSSIL FUELS IS CONTRADICTORY TO THE
COUNCIL'S AIR QUALITY AIMS.
Islington Council’s Air Quality Strategy aims to lower air
pollution in response to London’s air quality crisis which
sees 9,500 people in the city die early each year due to long-term
exposure to air pollution. IPPR thinkthank has found 48% of
London’s air pollution is caused by road transport, with
diesel being a major portion. Funneling money into fossil fuel
companies via pension fund investments therefore actively
undermines this the Council’s Strategy. (E)
7. THIS PETITION REQUEST IS REALISTIC AND FEASIBLE.
We recognise that immediate withdrawal of funds from fossil fuels
is impractical. However, alteration of strategy now to ensure
exclusion of all fossil fuels from the investments in five
years’ time is wholly feasible, as has been demonstrated by
Waltham Forest’s example.
This ePetition ran from 04/02/2017 to 04/08/2017 and has now finished.
19 people signed this ePetition.