The Parliamentary Contributory Pension Fund (PCPF) has announced that it is reducing its investment in fossil fuels and increasing its exposure to renewable energy.
A report from the £700m pension fund showed that almost a third is now being invested in low carbon and environmentally sustainable funds, following calls from hundreds of MPs to align the fund with the government’s legally binding climate commitments. *
However, the report also revealed that the £733m scheme still held shares worth £4.4 million in BP as of the 31st March 2019, down from £11.7 million at the end of March 2018, plus stocks worth up to £8 million in Royal Dutch Shell.
Although MPs have welcomed news in the fund’s latest filings that it is progressively shifting its investments towards renewable energy, with 5% of funding going to the green sector, for the first time ever.
The move is a success for the 360 serving and former MPs who have been pushing for the pension fund’s investments to fall in line with the government’s climate agenda.
Caroline Lucas, the Green party MP behind the campaign said, “Investing in clean energy is clearly the right thing to do, financially and for the future of our planet, so I’m glad the Parliamentary Pension Fund is doing this. But it has to also stop investing in Shell and BP”.
“Parliament declared a climate emergency nearly a year ago, and the Parliamentary Pension Fund needs to fall into line with this by ending the support for fossil fuels”, she added.
With government ministers shifting their portfolios towards renewable energy and away from fossil fuels, it means that the UK are still able to meet net-zero carbon emissions by 2050.
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