This report examines how 19 large public sector pension funds in the UK are facing major risks from climate change but are failing to address them.
The Lothian and Strathclyde Pension Funds, run by Edinburgh and Glasgow Councils, were found to be failing to take adequate action to protect their £27.1 billion investments from climate risks.
The funds claim to be addressing climate risk through a process of ‘shareholder engagement’ with fossil-fuel companies. This approach involves asking fossil fuel producers such as BP and Shell to become more climate-friendly – often in direct contradiction to these firms’ business plans.
Regarding the Lothian report found that :
- Both funds had raised climate change issues with the companies they invest in, including through external contractors, but had set no clear objectives for this effort.
- Neither had provided any evidence that shareholder engagement could insulate their funds from climate risks.
- Neither had policies in place to reduce their investments in fossil fuels.
The report was written by Friends of the Earth England, Wales and Northern Ireland, Platform and Friends of the Earth Scotland.
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