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29
Dec 2024
Council pension fund continues to invest in tobacco and fossil fuels
North Yorkshire Council’s pension fund continues to invest in tobacco and fossil fuel companies amid criticism of a lack of “ethical investment”.
The council’s fund is worth £4.6 billion and almost 100,000 people contribute towards it.
The authority is legally obliged to invest cash from its pension fund after contributions have been collected and pensions have been paid.
Its investments are managed by Border to Coast, which also manages other local authority pension funds.
However, Cllr Tony Randerson, of the Social Justice Party on North Yorkshire Council, has criticised the authority for investing in “unethical sectors”.
Among the investments in the fund include companies such as British American Tobacco, Shell and Philip Morris International.
Analysis of the fund by the Stray Ferret shows that the council’s pension fund has combined shares of £3.4 million in the two tobacco companies.
Border to Coast’s reports as of March this year show £2.8m worth of shares in British American Tobacco and £659,000 in Philip Morris International.
The council, which is the public health authority, commissions services to encourage people to stop smoking such as the Living Well Smokefree.
Smoking stock image.
Meanwhile, the pension fund also has investments in fossil fuel companies.
Currently, the fund holds £9.8 million worth of shares in oil firm Shell — a company which has faced criticism from environmental groups due to the amount of carbon emissions its emit globally.
The investment comes as the council itself has launched its own “Beyond Carbon” strategy and declared a climate emergency in 2022.
‘Bitterly disappointed’
Cllr Randerson, who raised the issue over an ethical investment review at a recent council meeting, told the Stray Ferret that he was disappointed that the fund appeared to have an “anything is acceptable” policy on investments.
He said:
I have to say I am bitterly disappointed and somewhat aghast that the North Yorkshire Council's pension fund has a policy which seemingly states that “anything is acceptable” by way of investments for this fund.
There are unethical sectors such as tobacco and especially arms which I would have expected the fund to have kept away from. Personally I would also like to see investments moving away from carbon intensive sectors that are incompatible with a transition to a low carbon economy.
Cllr Randerson added that the council should focus on investments which reduces its carbon footprint, such as green funds.
The Stray Ferret asked North Yorkshire Council whether it had any ethical investment policy and why it still held shares in tobacco and fossil fuel companies.
In response, Gary Fielding, corporate director for resources at the council and the treasurer of the North Yorkshire Pension Fund, said:
The North Yorkshire Pension Fund has a responsible investment (RI) policy which sets out an approach to managing assets that take environmental, social and governance (ESG) factors into account in investment decision-making and the role an investor plays as an active asset owner.
All of the fund’s shareholdings are made in accordance with this policy. They are managed on behalf of the fund by Border to Coast Pensions Partnership and Baillie Gifford. Both managers are strong advocates of RI, which is a distinct approach to ethical investment.
A broad range of ESG issues are considered and all companies are screened and monitored for any potential risks.
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