On Monday the 15th July Walsall Council will debate a fossil fuel divestment motion, calling on West Midlands Pension Fund to divest from oil , coal and gas. The motion is proposed by Councillors Shires, Barker,C. Bott, P. Bott and Young.
The motion says:
Walsall Council notes reports on BBC News 12 June 2019 by Roger Harrabin Environmental Analyst that the UK Government was to commit to almost zero greenhouse gas emissions by 2050 and Prime Minister Theresa May’s comments that:
There was a “moral duty to leave this world in a better condition than what we inherited” and that “Cutting emissions would benefit public health and cut NHS costs”.
On Tuesday 18th June, in declaring a “Climate Emergency”. This was a welcome symbolic step forward for the city. Unfortunately, Coventry failed to set out a meaningful target for climate change, as the council resolved to “recommend the course of action that we are currently undertaking”. Jim O’Boyle praised Coventry’s record on climate change, but falls in greenhouse gas emissions have been small and mostly due to rising poverty and deindustrialisation. Transport emissions remain stubbornly high, and the city’s highest source of greenhouse emissions comes from food.
Coventry needs to follow Birmingham’s lead and set out a target for net zero by at least 2030. In our proposed motion we set out a manifesto for achieving this target.
How will this be funded? Clearly government need to play their part, but the council also needs to follow Birmingham in calling for the West Midlands Pension Fund to divest from oil and gas companies that are pouring billions into exploring for more fossil fuels when they already have excessive reserves. These funds could benefit local green projects and divestment would send a strong signal to the global investment community that we cannot continue to bankroll climate destruction.
It would be a great help if you could email your local Dudley Councillor about the upcoming motion to be debated on 7th October 2019. You can find your local councillor here.
Here is a suggested email that you could send:
I am a constituent in the ………………………… ward,
I recently discovered that the West-Midlands Pension Fund, which manages the pensions of most council employees in Dudley and the rest of the West Midlands region, has significant investments in fossil fuel companies.
I am writing to ask you to support a motion calling for these investments to end and for Dudley MBC to implement a ‘Responsible Investment Policy’ which rules out future investments in fossil fuel companies. The motion is being presented at Full Council on Monday 7th October .
As well as financing these high emission industries the investments expose the pension fund to unnecessary risk. Much of the fossil fuel reserves which these companies rely on when judging their share value are ‘un-burnable’ if we are to significantly curb greenhouse gas emissions. They are stranded assets.
Given the risk posed by possible stranded assets, and more importantly the opportunity to contribute to a cleaner energy future, it no longer makes moral or financial sense to invest in the fossil fuel industry.
I look forward to your response,
Post Code ____________________
For further information may I refer you to divestwmpf.org.
Brilliant news! On Monday 7th October , at full council, Dudley MBC will debate a fossil fuel divestment motion.
The motion raised by Labour’s Councillor Pete Lowe is the second to be raised in the West Midlands. In 2017 Birmingham City Council unanimously passed a motion calling on West Midlands Pension Fund to divest from Oil, Coal and Gas exploration and extraction companies.
The motion has been on the agenda for several full council meetings but due to time pressures has yet to be debated. It will be discussed this time as it is the first motion on the list!We need to let Dudley councillors know that Dudley backs the motion.
Please spread the word and let your councillor know you support the motion.
This Tuesday, 11th June, Birmingham City Council voted unanimously to commit to a 2030 target for net-zero. This was a bold and necessary commitment which will shape all decision making in the city council over the coming years. Councillors spoke passionatly about improving home insulation, decarbonising transport and ensuring a just transition. But I want to highlight the speech by Cllr John Clancy who pointed out that in two years since Birmingham City Council came together to call for the West Midlands Pension Fund to divest from fossil fuel companies, nothing has happened. Here is a transcript of his speech:
Clearly this is an outstanding motion, which deserves our support which fills me with confidence in our future. However two years ago next month this council came together as we have done today to commit to a motion that made Birmingham City Council pledge to review its investment strategy and develop and implement a responsible investment policy which rules out new investments in fossil fuel companies. Do you remember that? That was two years ago next month. We came together.
In particular we took a view that the West Midlands Pension Fund (my favourite body as you all know) should immediately freeze any new investments in the top 200 publicly traded fossil fuel companies; to divest from direct ownership and in any co-mingled funds that include fossil fuel public equities and corporate bonds within five years; set out an approach to quantifying and addressing climate change risks affecting all other investments; and so on and so forth.
It was very important that we passed that. I cannot see any evidence actually that that has had any impact at all. And if you look at the top 20 investments of the West Midlands Pension Fund, you will see oil companies, and I think the amount invested in them has actually increased in the last two years. So BP – two BP funds in particular; we’ve got a whole range of mining companies that we’re invested in.
We have to take a view that if the city council is going to be net zero carbon by 2030, we have to look at what our investments in the West Midlands Pension Fund are doing at the same time.
Now, you may not know how much money went from this City Council to the West Midlands Pension Fund this last year, because the accounts are out. Last year, this city council gave to the West Midlands Pension Fund to invest for its employees and former employees half a billion pounds – in one year. That’s how much we’re paying into that fund. You think how much is going into that fund between now and 2030.
Now it has to be said about 80% of those funds are just in equities. They’re invested wherever. Very little is invested in this country, and we did in our motion two years ago ask to look at what local investment policy that pension fund was going to start to invest towards. I can see no evidence of that having happened. This year whilst we handed an extra 100 million pounds to that pension fund, it paid out £80 million to its investment managers. And those investment managers need to start advising how we start to divest, because it is a case of if you don’t decarbonise capitalism, it’s going to fail.
And we need to get to a situation where most of the fossil fuel companies in the equity markets are nowhere near getting to their Paris commitments. And the pension funds needs to divest from them or explain why that is not going to harm the beneficiaries of those pension funds.
So can we have in the task force a real effort to start to focus the minds of the West Midlands Pension Fund, investing our money. Thank you Lord Mayor.
We wish to thank Cllr Clancy for his words. He is absolutely right. It is unsustainable that the fund is putting its benificiaries pensions at risk by investing in fossil fuel companies which are driving the global climate and ecosystems to the brink of collapse. The fund must act now and divest from fossil fuels, as demanded by Birmingham City Council.