Lothian Pension Fund has at least £350 million invested in the fossil fuel industry, according to new analysis by Platform and Friends of the Earth Scotland.
The Lothian Pension Fund, administered by Edinburgh City Council, is the second biggest fossil fuel investor of all the council pension funds in Scotland.
The City of Edinburgh Council voted to divest the fund from fossil fuels in November 2022, yet the fund managers have not enacted this request. It invests in some of the world’s biggest climate polluters, including Exxon Mobil, Shell, Equinor, TotalEnergies and BP.
With virtually all oil and gas companies set to expand their operations, campaigners are calling on the Lothian Pension Fund to listen to councillors and stop funding fossil fuels.
Lothian Pension Fund administers the pension funds of almost 90,000 members from the four councils in the Lothians and 59 other employers, including Scottish Water, Edinburgh Napier University, VisitScotland and Heriot-Watt University.
Sally Clark, divestment campaigner at Friends of the Earth Scotland, said: “It’s unbelievable that despite clear direction from councillors, the Lothian Pension Fund is still investing this obscene amount of money in fossil fuel companies that are driving climate breakdown.
“Councils must play their part in protecting the long-term future of their employees by ending their support for oil and gas expansion and investing in building a cleaner, safer future for us all – but their attempts to do this are being blocked.
“The money moved away from fossil fuels could instead be invested in ways that support local communities and protect the planet for everyone, like renewable energy. As skyrocketing energy bills are plunging millions of people into fuel poverty across the UK, this transition is more important than ever.”
Joan Forehand, campaigner with Divest Lothian, said: “The economic and moral arguments against continuing investment in fossil fuel companies by the Lothian Pension Fund are overwhelming.
“In 2023 oil and gas companies doubled down on investing in the development of new fossil fuel projects, despite the stark warnings from climate scientists and the UN that this paves the way to catastrophic climate destabilisation and the resulting collapse of the economic systems on which future pensions depend.
“To protect the pensions of its members, the Lothian Pension Fund must join the growing number of pension funds divesting from these companies.”
Stephen Smellie, depute convenor at Unison Scotland, said: “Fossil fuels are bad for the environment and our retirement.
“These dirty deals threaten the future of our environment, and needlessly risk the retirements of the hundreds of thousands of Unison members that pay into local government pension schemes. To secure a future worth retiring into, schemes should respond to members’ calls to action and dump these dated fossil fuel assets.”
Across the UK, £16 billion of council pension funds is invested in the fossil fuel industry. Over 20% of UK councils now invest less than 1% of their fund into fossil fuels – a 10 fold increase since 2020, the last time analysis was conducted. Lothian Pension Fund was found to invest over 4% of its fund into fossil fuels.
25
0
20
Fossil fuels are vital until something better is universally, cost-effectively, available. Pension Fund Managers have Duties of Care, and are professionals. Green activist dreams will take time.Meanwhile we need food and fuels.