A council leader in Greater Manchester has accused neighbouring authorities of 'virtue signalling' by urging the regional pension fund to divest from fossil fuels.
High-ranking councillors in Manchester, Salford, Rochdale, Stockport, Bury and Wigan want the Greater Manchester Pension Fund (GMPF) to match the city-region’s target of becoming ‘zero carbon’ by 2038.
Andy Burnham, mayor of Greater Manchester, has also been asked to back their calls as part of his re-election campaign.
The GMPF, the largest local government pension scheme in the UK, has more than £1bn invested in the fossil fuels industry, which accounts for nearly five per cent of its total value.
However the fund, which is managed by Tameside council and chaired by leader Councillor Brenda Warrington, says it is investing £500m in renewable energy companies, including sizeable stakes in biomass and windmill energy.
A further £2.5bn is being spent on pursuing a ‘low-carbon strategy’ – which has received recognition from the House of Commons environmental audit committee – as it builds on its pledge to become carbon neutral by 2050 in line with the Paris Agreement.
But almost two years after Greater Manchester declared a climate emergency, councillors with cabinet responsibilities for the environment from across the conurbation have written to the fund asking it to take more decisive action.
The letter welcomed the low-carbon strategy but said other local government pension funds such as Clwyd, Southwark, Islington, Lamneth and Waltham Forest had already committed to fully divesting from fossil fuels.
Councillor Angeliki Stogia, Manchester council’s executive member for the environment, said: “The tide is turning towards renewable energy sources and continued investment in oil, coal and gas is only delaying the inevitable.
“We want Greater Manchester Pension Fund to make a bold statement which will help create the world we want to see for the generations to come.
“We stand ready to work with them to see what can be done and are urging ambition and action for a greener future.”
In a separate letter Coun Stogia contacted Andy Burnham to ask if he would include similar demands in his manifesto ahead of the Greater Manchester mayoral elections.
A spokesperson for Mr Burnham’s campaign said the manifesto was still being developed and that submissions such as Coun Stogia’s were welcomed.
But the joint letter to the GMPF has provoked a strong response from Coun Warrington, who insisted that pension assets could be invested ‘to create a sustainable, better future without compromising on returns’.
A statement by the Tameside council leader said the fund would not ‘shirk from its leadership role and disinvest’ and would continue working with companies to change their behaviours and become carbon neutral.
It is also exploring a target to become zero carbon by 2030, earlier than both the targets set by Greater Manchester and the Paris Agreement.
Coun Warrington said: “Sadly, it looks to me like election time virtue signalling without finding out the facts from the fund, the mayor or Greater Manchester Combined Authority leaders who formally supported the GMPF approach when considering the climate emergency, or any of the council representatives from each authority who sit on the management panel and carry out tremendous work to get the right balance without jeopardising hard-earned pensions of our workers and pensioners.
“The fund will not immediately divest and pass the buck to someone else, we want an orderly and just transition that is fair for communities and workers.
“The fund is operating within a clear ethical framework and seeking to change the behaviours of those companies we invest in to become carbon neutral whilst ensuring we protect the pensions of our members and reduce cost to taxpayers.
“The true facts, when measured internationally and independently, are that the GMPF is 25 per cent less carbon-intensive than the average pension fund so we are moving in the right direction to become carbon neutral.
“We are open and transparent and publish all our actions.”
Main image:
SCENE OF PROTEST: The GMPF, based at Guardsman Tony Downes House in Droylsden, has been the scene of green protest in recent years as groups call for it to divest from fossil fuels.
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