Swansea pension fund commits to fossil fuel investment reduction
0One of Wales’ biggest local government pension funds has started to reduce its carbon footprint by cutting the amount of cash invested in companies with high carbon intensity.
By the end of this month, the City & County of Swansea Local Government Pension Scheme will have transitioned £0.5bn of assets into a low carbon index tracking fund after the adoption of the fund’s Environmental, Social, Governance (ESG) Policy.
Clive Lloyd, deputy leader of Swansea Council and chair of the scheme’s pension fund committee, said:
“Like many other pension funds, we think carefully about how the investments we manage for thousands of existing contributors and pensioners are able to maximise the required returns, whilst also being mindful of our responsibilities to the environment and future generations.
“That’s why last year we were the first local government pension scheme in Wales – and among only a small number in the world – to commission a review of our equity investment portfolio to find out the exact extent of our carbon and fossil fuel related investments.
“The review showed that our investments in carbon-related industries were already 9% below the pension industry average.
“But, over the coming years, it is important that the world reduces its reliance on fossil fuels and carbon-based products, so it’s important that our investments reflect that too.”
The fund has committed to reducing its carbon and fossil fuel investments by 50% by 2022.
