Bridgend County Borough Council welcomes pension scheme’s commitment to the environment
Posted on: Tuesday 30 August 2022
Bridgend County Borough Council is pleased that the Local Government Pension Scheme is committed to reducing and withdrawing investments in fossil fuel holdings.
The scheme is administered by Rhondda Cynon Taf Council but also includes Bridgend County Borough and Merthyr. This means that the council’s official pension provider is dedicated to reducing carbon exposure across the fund.
As part of the fund’s arrangements, there is an investment strategy in place that covers responsible investment and carbon investment principles.
The key points within the strategy are:
- The fund recognises the investment implications of climate change and carbon emission management. It is fully aware that climate change is one of the risk factors for our pension fund investments.
- The fund believes that environmental, social and governance factors should be taken into account on an ongoing basis and are an integral part of the Fund’s responsibilities as a long-term sustainable investor.
- The fund is committed to an orderly carbon transition and to the process of reducing fossil fuel exposure.
- All of the fund’s investment managers are signed up to the United Nations Principles of Responsible Investment which encourages asset owners/managers to incorporate environmental issues into investment analysis and decision making.
This is supported and welcomed by Bridgend County Borough as it’s vital that we take every step possible to protect the environment and support the council’s 2030 Net Zero Carbon target.
It is also pleasing to see that the strategy is already having a positive impact and allows for regular monitoring to ensure progress is continuing to reduce fossil fuel holdings in an orderly way.Councillor Huw David, Leader of Bridgend County Borough Council
At a Rhondda Cynon Taf Council meeting in July, their Leader, Councillor Andrew Morgan, said: “The pension fund has always invested its assets in a responsible way and engages with companies as part of ensuring an orderly carbon transition. This has already resulted in ongoing reductions in our fossil fuel holdings and the establishment of disinvestment principles.
“I would now like to announce that as part of our climate change goals, I have asked officers to work with the Pension Committee to review options for setting a target for disinvesting our remaining pension fund investments away from fossil fuel extraction.”