(Leeds North West)
(Lab/Co-op):...For instance, climate change may result
in liability risks when those who suffer losses as a result of
climate change take legal action to recover damages from those
who can be found responsible. For example, the city of New York
is currently seeking to recover costs from BP, ExxonMobil,
Chevron, ConocoPhillips and Shell as a result of flooding.
Transition risks could also be faced by companies in high-carbon
sectors that fail to diversify and adapt to policies introduced
in response to the Paris climate change agreement. Firms that do
not make a timely transition and remain over-invested in
climate-changing activities could face costly regulatory action,
suffer reputational damage, or see their assets become stranded
as carbon prices rise. Our inquiry found several examples of
stranded assets, such as oil refineries or fracking
infrastructure. A Bank of England paper published in 2016 warned
that
“a sudden, unexpected tightening of carbon emission policies
could lead to a disorderly re-pricing of carbon-intensive
assets”.
These are real challenges for pension providers and pension
investors...
...Pension savers should be given the greatest opportunity to
engage with decisions about where their money is invested. As I
said, younger generations want fully fossil-free pension options.
Divesting from fossil fuels makes sense not just in terms of
ethics and the climate, but as a sound long-term financial
strategy As soon as I joined the parliamentary pension scheme, I
also became a supporter of Divest Parliament. According to the
latest annual report, as my hon. Friend the Member for Warwick
and Leamington (Matt Western) said, the fund includes stakes in
BP at £ 733 million, Shell at £6.6 million, Rio Tinto at £3.67
million and Total at £2.93 million. Our own funds are being
invested in those companies. It is time our own trustees heard
our voices in this debate and in this place, divested our pension
funds and reinvested in renewables and clean tech for our future
and for the planet...
The Parliamentary Under-Secretary of State for Work
and Pensions (Guy Opperman):...We can see the changes
that are taking place. Individual companies must answer for
themselves. Last year, Shell, one of the largest companies that
we are debating, agreed to link its executive pay to its carbon
emission targets, in direct response to particular shareholders.
The Minister for Energy and Clean Growth, my right hon. Friend
the Member for Devizes (Claire Perry), would be here if she
could, to make the case for the Government’s clean growth
strategy and the green agenda. Like her, I urge individual
consumers—anybody who has a particular pension—to make the case
to their trustees as to how that is being invested...
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