Laura Sharman 09 November 2018

Council pension funds at financial risk from climate change, report warns

Council pension funds at financial risk from climate change, report warns image

Local Government Pension Funds are failing to protect themselves from the financial risk posed by climate change, a new report has warned today.

The report, published by Friends of the Earth and Platform London, assessed how some of the largest LGPFs were addressing climate risk.

It found the majority of the funds have not measured climate risks and only four were developing strong climate change strategies such as divesting away from fossil fuel companies.

It also revealed that many of the funds do not have clear goals or targets when using shareholder engagement with companies to address climate change.

‘Although many Local Government Pension Funds recognise the financial risk posed by climate change, they are failing to take sufficient action to address it,’ said Deirdre Duff, divestment campaigner at Friends of the Earth.

‘Less than 20% of fossil fuel reserves can be used if we are to meet the goals of the Paris Climate Agreement. It makes neither ethical nor financial sense to invest in the fossil fuel industry when such a proportion of its assets are unburnable.’

Sakina Sheikh of Platform London added: With the climate crisis underway, and a financial consensus building in the UK finance sector - it is clear that addressing climate risk has become an expected practice to ensure councils are not invested in soon-to-be stranded assets.’

In competition with the PWLB image

In competition with the PWLB

Christian Wall considers what alternative funding channels are available to local authorities beyond the Public Works Loan Board.
Highways jobs

Chief Planning Officer

Leeds City Council
Up to £106k
Leeds is a city that’s brimming with confidence. Leeds, West Yorkshire
Recuriter: Leeds City Council

Senior Revenues Specialist

Eastleigh Borough Council
£39,700 - £42,044
If you are excited by this opportunity and feel you have the skills, experience and attitude we are looking for, we would love to hear from you. Eastleigh, Hampshire
Recuriter: Eastleigh Borough Council

Environmental Health Officer WCC10676

Westminster City Council
£33,759 - £47,274 per annum
As an Environmental Health Officer in Food Safety or Health and Safety, you will be responsible for... London (Greater)
Recuriter: Westminster City Council

Children's Services Social Worker - ASYE Programme

Royal Borough of Greenwich
£28,215 - £34,130
You’ll need to demonstrate an interest in working with children and their families, and show us that you can manage the... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Property and Facilities

Essex County Council
Up to £74K
This role is part of the Capital Investment and Delivery leadership team and has a key role to play in shaping and... Chelmsford, Essex
Recuriter: Essex County Council

Local Government News

Latest issue - Local Goverrnemnt News

The March issue of Local Government News explores alternative funding channels that are available to councils beyond the Public Works Loan Board, what hurdles merging councils face in coming together, and how local government is handling GDPR.

This issue also has a special highways and street lighting section exploring how councils can use lighting to embark on their smart city journey and using IoT technology to weather the storm.

Register for your free magazine