Agenda item

To receive a Motion on Clwyd Pension Fund Dinvestment – 1.

That the Chair of the Committee progress the recommendations above.

            The Chair explained that this was brought to the last meeting but was not progressed.  The purpose of the motion was to gather evidence and propose actions in light of expert advice.  He referred to the comments made by the Programme Manager on public sector targets for net zero by 2030 in Wales which applied to all areas of the Council apart from the Clwyd Pension Fund which had no target at all.  

Welsh Government (WG) were looking to bring Local Authority Pension Funds in line with the public sector and he thanked Jack Sargeant MS for his work in this area.  The Chair reported on the investments held by the Pension Fund which had a duty to manage those investments for its members.   He felt that the 2045 target set by the Clwyd Pension Fund was out of line with the rest of the public sector.  There could be good arguments for this as it was a complex issue, and it was therefore necessary to seek expert advice.   The motion was to ensure that this was received, and that the Committee was able to make suggestions to the Council as employers in relation to the Clwyd Pension Fund.

            Councillor Rose commented that there was a lot of money and carbon involved and felt the Committee could me some suggestions to ensure it came in line with the public sector targets.

            Councillor Hodge felt that, although he had doubts about the legality of looking at this, he was reassured that the investigation was regarding fossil fuels.  He said that one of the reasons fossil fuel companies still produced it was because cars, heaters and boilers still used it and asked who was spending money to make us green.  He said BP and Cemex owned Halkyn Quarry and were working to develop solutions to decarbonise the cement production process.  BP had announced a 45% stake to project and lead the largest green hydrogen energy hub based in Australia and had also announced the green hydrogen production in Spain, Portugal and the UK.  They had improved EV batteries for cars with Castrol and had just delivered the first solar project in India which included 200,000 solar panels.  He welcomed that the Committee look into companies where investments were made by the Pension Fund but reiterated that companies such as BP and Shell still provided oil and gas because the demand was there, but they were also investing heavily in green alternatives to fossil fuels.

            Councillor Shallcross reported that as a member of the Clwyd Pension Fund Committee he was confident in the work being undertaken by the officers to ensure that companies moved to greener energies.  He felt it was in the company’s best interests to become greener to survive but they needed a period of transition. 

            Councillor Gee reported on a recent news item “makemymoneymatter.co.uk/green my pension” which highlighted the best way to cut an individual’s carbon emissions to make their pension green.  

            Councillor Coggins Coggin understood that the Motion was to hold a low-level inquiry about potential divestment and looking at the companies in which the Clwyd Pension Fund held investments.  He was not sure if any company was being singled out and felt the Committee was evidence gathering initially to consider what was received with no judgments made either way.  He felt that no prejudgements were being made within the Motion.

            Councillor Rose said this was the Climate Change Committee and that BP had been mentioned several times for its green washing techniques including spending £800,000 on digital advertising once a windfall tax was mentioned.  It was well known that Xenon another large company spent a fortune in the 1970s covering up evidence that climate change was real.   He agreed that it should be evidence based but that it should also include the £7b of profit made, saying what they were putting in to green was a pittance to ensure the climate change and reduction of carbon of that industry.

            Councillor Marshall said the results would be interesting but felt the timescale was short for the report to be presented to the March meeting and suggested it be extended to March 2024.

            The Chief Officer said he did not underestimate the importance the Pension Fund could have on our carbon footprint, but again stated that the Council did not have the resources to facilitate the inquiry which was proposed.  It was possible to commission the first one, but it would not be possible to commission the second one.

            The Chair referred to the comments made by Councillor Marshall and said this was drafted for the November 2022 meeting was now back before Members in an edited form.   He recognised the need to extend the deadline for this but it could not be extended beyond the summer as there could be changes to the Committee.  He proposed that the third recommendation be changed to July and asked if the seconder of the motion agreed, and Councillor Rose confirmed he did.

            The Chief Officer reiterated that the Committee did not have the resources to carry out the inquiry properly which would jeopardise the principle and the process.  The time frame was also a concern for arranging a group of people at a senior level together in a short period of time.  This could have a negative effect on the Pension Scheme if we came back with the wrong answer based on an un-resourced Flintshire Officer team with people not turning up or sending the wrong people.   It could end up being a waste of time, but he understood the reasons for the motion.

On being put to the vote the motion was carried.

Flintshire County Council Climate Change Committee resolved:

1.      That the Committee commissions an inquiry into the climate performance and targets of the Clwyd Pension Fund.

2.      That this inquiry shall take written and oral evidence as set out in section 3.                 

3       That the inquiry will report back to the committee at the July meeting.

RESOLVED:

That the Chair of the Committee progress the recommendations above.