The Transport for London (TfL) Pension Fund must take serious steps to help address the ongoing climate emergency by ensuring their pension funds are not related to extractive fossil fuel investments.
The Mayor committed, in his 2021 manifesto, to ‘working with the London Pensions Fund Authority (LPFA) and the trustees of the TfL Pension Fund to ensure investments are ethical, including divestment from fossil fuels and maximising the good they can do for Londoners’.[1]
Whilst the LPFA has moved away from investing in any extractive fossil fuels, TfL continues to invest in extractive fossil fuels, and has yet to announce any plans to stop those investments. This goes against the Mayor’s view that divesting from fossil fuels is required for the Greater London Authority (GLA) to achieve net zero.[2]
Concerns have also been raised regarding a lack of investment from the LPFA and TfL Pension Fund in London-based companies. The Committee believes the funds can demonstrate stronger commitments to invest in London without compromising the objective of achieving diversified investment portfolios.
The London Assembly GLA Oversight Committee has today published a report with 18 recommendations outlining ways the GLA, its functional bodies and their pension funds can be enhanced to be more transparent and to benefit London.
Recommendations within the report include:
- The Mayor should convene the London Pensions Fund Authority (LPFA) and the TfL Pension Fund to explore the opportunity and feasibility of the TfL Pension Fund joining and contributing to the London Fund
- The Mayor should encourage the TfL Pension Fund to report on and publish annual performance against its net zero targets.
- To address the climate emergency, the Mayor should ensure the LPFA and the TfL Pension Fund take a more consistent approach to extractive fossil fuel investments. Specifically, this should include pressing the TfL Pension Fund to develop urgent action plans and take action to divest completely from extractive fossil fuels.
- The TfL Pension Fund should conduct and publish Equality Impact Assessments of its final reform proposal.
Chair of the GLA Oversight Committee, Léonie Cooper AM, said:
“There is a balance that must be struck when considering pension funds.
“Whilst it is essential that pension funds have a diverse portfolio of investments, it is also important, now more than ever, to consider the impacts specific types of investments have on the environment.
“Whilst we are in the midst of a climate emergency, we need to show strong leadership in the fight against climate change, and we believe that by divesting from fossil fuel investments, we send a clear message that we are taking this issue seriously.
“There are also some simple steps these organisations can take to be more transparent and to improve the lives of Londoners, by investing in the London Fund for example, which will improve housing and infrastructure across London.
“I hope our recommendations are considered and I look forward to receiving a response on these matters in due course.”
GLAOC Report - GLA Group Pensions
Notes to editors
- 1 Sadiq for London 2021, 2021 Manifesto
- 2 GLA, Divestment and green investment
- Full report attached.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
- Léonie Cooper AM, Chairman the GLA Oversight Committee, is available for interview.
- Find out more about the work of the GLA Oversight Committee.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
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