A row has broken out over a council’s commitment to tackling climate change because critics say it heads up the ‘dirtiest local authority pension fund in the UK’.
During a debate on a Labour motion declaring Tameside council’s opposition to fracking, Tory councillor Liam Billington took aim at the town hall over its close links with the Greater Manchester Pension Fund.
The pension fund board is administered by Tameside council, and chaired by the deputy leader of the council, Bill Fairfoull. It is based out of the Guardsman Tony Downes House in Droylsden.
The GMPF has come under fire from environmental groups including Fossil Free Manchester, who says that the scheme has more than a billion pounds invested in fossil fuels globally.
Its previous chair and former council leader Brenda Warrington said in 2020 she was ‘tired of all the constant attacks from environmental warriors’ on the pension fund.
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Current council leader Coun Ged Cooney has defended the GMPF’s investment portfolio, telling councillors they invest £1 billion in renewable energy.
Coun Billington, who represents Stalybridge South ward, said: “I do find it strange if not hypocritical of the Labour group to be presenting this [anti-fracking] motion tonight as it’s your group that runs the Greater Manchester Pension Fund and that has been described by Friends of the Earth as the dirtiest local authority pension fund holding the highest amount of shares involved with the production of fossil fuels.”
He said that according to the pension’s fund last annual report for 2021, £327m was held in Royal Dutch Shell and £277m in BP. There were also millions in equity holdings in mining companies, including £254m in Glencore, £159m in Anglo American and £149m in Rio Tinto.
“This does not include the pooled assets which are held by the hedge funds,” Coun Billington added.
Council leader Ged Cooney, who previously chaired the pension fund’s management and advisory committee, responded specifically to the criticism of the GMPF as the ‘dirtiest’ pension fund.
“I think we are the biggest by a country mile, we’re £30bn pounds in assets,” he said.
“We are the biggest investor in renewables in the whole of this country. £1bn we invest in renewables, no one else is anywhere near us with that.
“We are also the 35th best investor regarding renewables in the world. And I’ve been to some meetings with Glencore and they do green-washing, no disputing that.
“I am not going to defend any of the companies that have been mentioned here tonight. I’m not going to defend them at all.
“I have issues over the employment rights, the way that they deal with people, the way that they deal with communities and governments and everything else.
“But what we are doing is part of an organisation worldwide where we meet and we lobby and we push and we pull. The only way you’re going to change them is engage with them, that’s the reality.”
He added: “Make one thing clear there is no one going to be doing fossil oil after 2050 so these companies will be changing and what is important is that we get them to change as quickly as possible.
“They will change with the dialogue. I’m proud of a £30bn fund, £1bn is in renewables and that’s important to us. We work with ‘Just Transition’ in that you will come out of this in stages.
“It might not be 2038, 2040, but our commitment is to the Paris Agreement of 2050. We will achieve that I’m sure of that.”
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