Kirklees Council has been accused of investing millions of pounds in the “financially risky and morally bankrupt” fossil fuels industry.
Campaigners with Fossil Free West Yorkshire pointed to new data that revealed local authorities across the county - including Kirklees - are investing £933m in the fossil fuel industry through the West Yorkshire Pension Fund (WYPF).
They say the controversial investments not only threaten the climate, they also represent an unacceptable financial risk to pension holders.
Ali Stopher, from Huddersfield, speaking on behalf of Fossil Free West Yorkshire, said: “It’s shocking to see our pension fund investing so significantly in such a financially risky and morally bankrupt industry.
“Earlier this year WYPF said they wanted to reduce their carbon exposure. We want them to put a timescale on this that is consistent with the Paris Treaty target to keep the world’s warming to 1.5 degrees.”
Two years ago Kirklees Council voted to avoid direct investment in institutions with material links to fossil fuel extraction. In addition, it said its representatives on the WYPF’s investment advisory panel “to exercise their duty and to call for a review of WYPF fossil fuel investments.”
Kirklees councillors sit on both the WYPF’s investment advisory panel and the joint advisory group.
Among the organisations whose members’ money is invested in the WYPF are the unions Unison, Unite and the GMB.
Earlier this year Kirklees Unison’s AGM voted for the WYPF to join other pension funds around the UK by disinvesting the £500m it has in fossil fuels and to reinvest it in a safe alternative. The decision was reinforced at the end of June when the union’s National Delegate Conference voted unanimously to seek divestment of local government pension schemes from fossil fuels over five years.
When asked to comment on the issue, a spokeswoman for Kirklees Council said it was a matter for Bradford Metropolitan Council, which administers the WYPF.
But Kirklees’ Green leader Andrew Cooper, who tabled the motion to council in 2015, said: “Kirklees Council has made a mistake by saying it is nothing to do with them.
“Councillors from Kirklees have input on the advisory board. Governance is not delivered by councils but via nominees.”
He added: “The decisions are not all taken by Bradford Council. They are taken by the representatives on the board of the WYPF. And there are representatives of Kirklees Council on that board.”
Jane Thewlis from Fossil Free West Yorkshire said renewable resources such as solar and wind power had taken off “beyond anyone’s expectations” and are predicted to soon be cheaper than fossil fuels.
“We are not telling the WYPF where to invest. Our campaign is about divestment.
“They have to decide where they invest money.
“But other pension funds are making the decision to divest. I would like to think that the WYPF is considering pulling out of fossil fuels.”
Andrew Cooper added: “Fossil fuels are the fuels of the past. We should be investing people’s pensions in the future. We need to invest in the solutions that are coming through, not tired technology and initiatives.”
A spokesperson from WYPF said: “The WYPF position and concerns on this serious issue are clearly set out at www.wypf.org.uk/fossilfuels .
“WYPF has been instrumental, together with other members of the Local Authority Pension Fund Forum, (http://www.lapfforum.org/engagement-themes/environmental_carbon/ ) in gaining management support at the companies concerned for the ‘Aiming for A’ and subsequent resolutions addressing carbon emissions and the changes needed to meet the Paris Accord.
“It will continue to use its power as a significant shareholder to facilitate change, power it would lose immediately if it indicated its intention to sell its shares.”
