(Warwick and
Leamington) (Lab):...Sadly, according to the 2018
report of the parliamentary contributory pension fund, its
largest holding is in BP. The fund has no positive investments
that are committed to bringing about a zero-carbon world,
which is a real shame. Hence, 244 serving and former MPs
have signed the Divest Parliament pledge calling on the
trustees to phase out investments in fossil fuel companies;
I have signed that pledge. As if to underline this move,
the Church of England’s General Synod—its parliament—voted
347 to 4 in favour of removing its holdings in fossil
fuels. That type of leadership is widespread and it is
something we should follow.
In following the leadership of others, and going for
socially, environmentally and economically advantageous
investments, let us ensure that we are Paris compliant.
Almost 20 years ago, BP rebranded as Beyond Petroleum.
Let us go beyond petroleum, beyond BP and show leadership.
(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...
To read the whole debate, CLICK HERE
