Call for Highland Council to stop investing in fossil fuels

HIGHLAND Council should stop investing in fossil fuels in its pension fund after losing over £11.5 million in the last three years.

That is the plea made by Ariane Burgess, the Highland Greens lead candidate for next year's Scottish parliamentary elections.

She said the council's fund is one of ten local government pension funds which saw investments in oil companies collapse between April 2017 and November 2020. New research revealed Highland Council lost £11,650,109 in three years. The fund administers pensions on behalf of the local authority.

Ms Burgess said: "Public pension funds invest millions in bankrolling oil companies, the arms industry and big tobacco firms every year. Not only are these investments unethical but as this research shows they are actually losing pension funds substantial amounts of money.

"I don’t believe that most people who have chosen a career in public service want to see their pension funds funnelling cash into these companies when it could be invested in socially responsible endeavours like clean energy production, house building and public transport improvements.

"I urge Highland Council’s pension fund to divest its stake in fossil fuels now and call on Highland Council to bring to bear its influence to make this happen."

A local authority spokeswoman said the fund the is "a different entity from the Highland Council and has its own governance structures." It has has its own board and committee, constituted of pension scheme members, trade union representatives, and elected members from authorities within the scheme.

She said: "The Highland Pension Fund assets are held as part of a balanced portfolio that aims to maximise returns while minimising risk for the benefit of the scheme members. Investment decisions are made in line with the fund’s Statement of Investment Principles.

"The fund recognises that social, environmental and ethical considerations are among the factors which managers will take into account, where relevant, when selecting investments for purchase, retention or sale.

The spokeswoman added: "The Pension Committee has instructed the investment managers to take into account the key principles of socially responsible investment, primarily through a policy of engagement with companies that demonstrate appropriate observance of these principles. Also the fund is a member of the Institutional Investors Group on Climate Change (IIGCC) which allows the fund to be aligned with and contribute to one of the leading organisations challenging corporate entities over their climate change policies."

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