Divestment from fossil fuels
“This Assembly welcomes the growing movement to divest from fossil fuels in order to, in the words of Desmond Tutu, “break their ties with corporations financing the injustice of climate change.”
This Assembly believes that the GLA Group and the London Pension Fund Authority could contribute positively towards the Mayor’s aim of reducing London’s carbon emission levels by 60% by 2025, and towards securing London’s future prosperity, and avoid the risks associated with over-valued assets highlighted by the London Assembly Economy Committee and the Bank of England, by joining this movement and divesting from fossil fuels.
This Assembly also notes that the UK’s low carbon and environmental goods and services sector has been steadily growing at 4.8%, even during the recession. In London specifically, the Assembly recognises that the sector is worth approximately £25.4bn to the capital’s economy, with 9,211 green firms providing skilled employment opportunities. Divesting from fossil fuels would therefore open up investment opportunities in a growing sector, which alongside other non-fossil fuel related investments would ensure that the pension fund was not harmed by divestment.
This Assembly therefore calls on:
- the Mayor of London to make a public statement supporting the principle of divestment; a commitment to avoid investment in any bonds, stock or shares connected with fossil fuel extraction; and a commitment not to accept sponsorship and advertising from fossil fuel companies in any part of the GLA Group;
- the London Pension Fund Authority, subject to meeting its fiduciary requirements and following consultation with members of the scheme, to immediately freeze any new investment in fossil fuel companies, including those made by externally managed and pooled funds; to offer a fossil fuel free pension scheme to members; and to draw up a plan for a managed divestment from the top 200 companies with the largest known carbon reserves (oil, gas and coal) within five years.”