UK pension funds get green light to dump fossil fuel investments
Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term investment in green and “social impact” opportunities.
Government proposals published on Monday are designed to give pension fund trustees more confidence to divest from environmentally damaging fossil fuels and put their cash in green alternatives if it meets their members’ wishes. Until now many pension trustees have been hamstrung by fiduciary duties that they feel requires them to seek the best returns irrespective of the threat of climate change.
The new rules, though couched in opaque legalese, are a coded go-ahead for pension funds to sell shares in fossil fuel companies if they believe that they could turn into “stranded assets”. The term refers to companies’ coal, oil and gas deposits that may not ever be monetised as the world transitions to a low-carbon economy.
Read more: The Guardian
