Northern Ireland’s public service pension administrator has been asked to pull any investments in Russian oil, gas and coal companies because of the Ukraine War.
It comes after Waringstown Climate Action Group made a presentation to Armagh, Banbridge & Craigavon Borough Council’s Environmental Services Group on in February outlining the financial risks of continued investment in fossil fuels.
On Monday night the full council voted unanimously in support of completely divesting the pension fund from fossil fuels and are now pursuing a timetable for delivery.
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In a letter to NI Local Government Pension Scheme Superannuation Committee (NILGOSC) chief executive David Murphy they asked him to “immediately exclude all Russian fossil fuel companies from directly and indirectly managed investments”.
Mr Murphy previously told this paper NILGOSC has no direct investments in fossil fuels companies - but he couldn’t put a figure on indirect investments.
It’s unclear whether any of the fund is invested in Russian firms.
The letter from Armagh, Banbridge & Craigavon Council reads: “We note from your presentation that NILGOSC is keenly aware of climate change and we would commend you on the positive steps take already... by reducing exposure to fossil fuels by 80% between 2015 and 2019.
“We would ask that you continue this positive work.”
As well as the immediate divestment from Russian firms, the pension administrator has also been asked that “a clear timetable is set out out for full divestment of the remaining percentage of money that is raised through fossil fuel companies”.
Fossil Free NI welcomed the development while a spokesperson for Waringstown Climate Action Group said: “Continued burning of fossil fuels is leading to increasing risks to people and pensions in Northern Ireland.
“The climate emergency is evident in the destruction of farmland and biodiversity caused by wildfires, and the impact on infrastructure and homes from storms and floods is costing millions of pounds.
“For pension funds, there is a real risk that continuing to invest in fossil fuels will result in shocks and stranded assets, just as we are seeing with investments in Russian oil companies at the moment.”
As of March 2021, 142,492 people had pensions in the Local Government Pension Scheme in Northern Ireland.
The fund is valued at £9.795 billion.
In 2019, NILGOSC said in its annual report that the fund’s exposure to coal, oil and gas was at 0.4%.
That equates to an investment of £39m in fossil fuels in 2021.
NILGOSC declined to comment, but its chief David Murphy told councillors at Armagh, Banbridge & Craigavon Council in February "our strategy is not to blanket ban fossil fuel holdings".
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