Climate justice campaigners have condemned the Lothian Pension Fund for increasing its investments in fossil fuels despite the worsening climate emergency.
The latest investment holdings list from the Lothian Pension Fund reveals that the fund’s investments in oil and gas companies have risen in value to £208m in 2024 from £166m in 2022. This increase is driven by the purchase of additional shares rather than changes in the market value of existing holdings and has arisen despite Edinburgh and East Lothian councils passing motions in 2022 calling on the fund to divest from fossil fuels in order to tackle the climate crisis.
The Lothian Pension Fund is the second biggest fossil fuel investor of all the council pension funds in Scotland. It invests in some of the world’s biggest climate polluters, including TotalEnergies, Exxon Mobil, Eni, Equinor, Shell and BP.
TotalEnergies, now Lothian Pension Fund’s largest fossil fuel investment following a recent significant purchase of additional shares, is currently developing the East African Crude Oil Pipeline. If completed, the pipeline will stretch 1,444km across Uganda and Tanzania, to pump oil out of new oil fields in Uganda to be exported on the international market. It would produce 379m tonnes of carbon emissions if it goes ahead.
Joan Forehand from campaign group Divest Lothian said: “It is appalling that the Lothian Pension Fund is choosing to invest even more of its members’ pensions in companies that, despite responsible investors’ efforts over many years to get them to change course, are doubling down on oil and gas expansion plans.
“The science is clear: we need to rapidly transition away from fossil fuels to avoid catastrophic climate breakdown, and the economic collapse that would bring. Increasing investment in the fossil fuel industry highlights the failure of the Lothian Pension Fund to adequately assess climate change risk in its financial modelling.”
Sally Clark, divestment campaigner at Friends of the Earth Scotland, said: “It’s unbelievable that despite the worsening climate crisis and clear support for ending fossil fuel investments from councillors in Edinburgh and East Lothian, Lothian Pension Fund has actually increased investments in fossil fuels.
“These fossil fuel companies are driving climate breakdown and the pension fund’s managers have a responsibility to act in the best interests of their members and future generations.
“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.”
Jane Herbstritt, climate campaigner at Global Justice Now added: “Despite the certainty of the climate emergency, TotalEnergies is pressing ahead with its climate-wrecking development of the East African Crude Oil Pipeline – displacing local communities and destroying the environment in order to profit from pumping out more new oil than can be safely burned.
“It is wholly irresponsible for the Lothian Pension Fund to give its backing to this by increasing its investment in TotalEnergies, particularly when councillors in Edinburgh and East Lothian have voted for the pension fund to divest from oil and gas.”
Divest Lothian is calling on the pension fund’s managers to stop investing in fossil fuels and to instead invest in renewable energy and social housing in order to prioritise the long-term health and well-being of its members and of communities around the world.
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