Scottish council pension funds have been urged to invest more in sustainable energy and housing projects.

A report published jointly by Friends of the Earth, Unison Scotland and the Common Weal think-tank revealed that Scotland’s local authority pension funds are still heavily invested in fossil fuel companies – committing £1.7bn to such firms in 2015/16.

Strathclyde’s giant pension fund invested the most in fossil fuel firms, committing £890m last year.

Freedom of Information requests revealed that just three pension funds have invested in social housing or renewable energy.

Ric Lander, Friends of the Earth’s divestment campaigner, said: ‘Council pension funds have huge clout and can shape our future.

‘Divesting from fossil fuels is an opportunity to contribute to a brighter future.’