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19
Jan 2022
A North Yorkshire County Council-controlled pension fund invests millions into fossil fuel companies whilst the council promotes carbon reduction policies, the Stray Ferret can exclusively report.
Over the last two years, the council launched its "Beyond Carbon" plan that sets a target date of 2030 to reach net-zero neutrality.
It has also been instrumental in developing sustainable travel schemes in Harrogate such as the Otley Road Cycle Path, the Station Gateway and the Beech Grove Low Traffic Neighbourhood.
But away from the public gaze, the council is investing millions in fossil fuel companies with a pension funding policy that is directly at odds with its public messaging and sustainable transport plans.
The fund has sizeable holdings in 11 fossil fuel companies
The fund has a sizeable £7m holding in oil firm Shell and £5.5m in BP, which Greenpeace has called "climate criminals" due to its contribution to climate change.
Investments also include £5m with Occidental Petroleum, which operates oil drilling rigs in the United States, Canada and Chile.
The investments mean thousands of council staff will have their retirements part-funded by the companies.
NYCC is behind the Beech Grove Low Traffic Neighbourhood
Andy Rickard, chair of Harrogate and District Green Party told the Stray Ferret he was "angry and frustrated" by the council's "hypocritical" investments. He called on NYCC to divest from fossil fuel companies immediately.
He said:
York Liberal Democrat councillor Christian Vassie is one of 11 councillors that sit on the North Yorkshire pension fund committee. He told the Stray Ferret that "we have to sort this out".
He said:
York Liberal Democrat councillor Christian Vassie
A study published ahead of the COP26 climate summit in November suggested half of the world's fossil fuel investments could become worthless by the mid-2030s due to the transition towards net-zero.
Cllr Vassie said the pension fund needs to have "the courage of its convictions" to leave fossil fuel investments behind in favour of greener alternatives.
He warned if they don't, the council could be left lumbered with "stranded assets".
A BP oil drilling rig in the Gulf of Mexico. Credit - BP
For campaigners like Andrew Rickard from the Harrogate and District Green Party, progress is not coming quick enough.
He said there is "little evidence" to support the fund's claim that its "active engagement" has had any effect whatsoever on the way fossil fuel companies operate.
He added:
Tomorrow, we reveal how the Pension Fund invests £15m in arms companies that have built weapons for the controversial Saudi Arabia-led bombing campaign in Yemen, killing thousands of civilians.
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