Minute 432 (Cabinet Book 2, Agenda Item 13 refers)

Called-in by Councillors M Dent and L Burton

The Committee considered Minute 432 of the meeting of Cabinet held on 6^th November 2018, which had called in to Scrutiny. This concerned the notice of motion calling on the Council to request the Essex Pensions Committee to divert investment away from fossil fuels which had been proposed by Councillor Ware-Lane and seconded by Councillor Dent.

Resolved:-

1.     That the following decision of Cabinet be noted:-

“1. That it be noted that the Essex Pension Fund has advised that it has a fiduciary duty to ensure it has sufficient funds to pay pensions on behalf of more than 150,000 people.  Investment decisions must therefore be directed towards achieving what is best for the financial position of the Fund.  In order to maximise returns, the Fund has a diverse range of investments including investment attributed to the energy/mining sector.

2.     That the approach adopted by the Essex Pension Fund, be endorsed.”

Note: This is an Executive Function

Cabinet Member: Cllr Lamb

Notice of Motion attached.

At the meeting of Council held 18^th October 2018, Members received a notice of motion calling on the Council to request the Essex Pensions Committee to divert investment away from fossil fuels.

This had been proposed by Councillor Ware-Lane and seconded by Councillor Dent.

Resolved:

1. That it be noted that the Essex Pension Fund has advised that it has a fiduciary duty to ensure it has sufficient funds to pay pensions on behalf of more than 150,000 people.  Investment decisions must therefore be directed towards achieving what is best for the financial position of the Fund.  In order to maximise returns, the Fund has a diverse range of investments including investment attributed to the energy/mining sector.

2. That the approach adopted by the Essex Pension Fund, be endorsed.

Reason for decision:

To respond to the Notice of Motion.

Other options:

None

Note: This is an Executive Function

Eligible for call-in to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

At the meeting of Council held 18^th October 2018, Members received a notice of motion calling on the Council to request the Essex Pensions Committee to divert investment away from fossil fuels.

This had been proposed by Councillor Ware-Lane and seconded by Councillor Dent.

Resolved:

1. That it be noted that the Essex Pension Fund has advised that it has a fiduciary duty to ensure it has sufficient funds to pay pensions on behalf of more than 150,000 people.  Investment decisions must therefore be directed towards achieving what is best for the financial position of the Fund.  In order to maximise returns, the Fund has a diverse range of investments including investment attributed to the energy/mining sector.

2. That the approach adopted by the Essex Pension Fund, be endorsed.

Reason for decision:

To respond to the Notice of Motion.

Other options:

None

Note: This is an Executive Function

Eligible for call-in to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Notice of Motion attached.

Resolved:

That in accordance with Standing Order 8.4, the following Notice of Motion, be referred to the Cabinet:

‘Invest in the Future / Divest from Fossil Fuels

1. This Council notes:

• That our council pension fund is heavily invested into fossil fuels, according to data available on https://gofossilfree.org/uk/fuellingthefire/
• That the Paris 2015 Agreement commits our government to keep the global temperature increase within 2 degrees and aim for 1.5 degrees. Carbon budgets produced by the IPCC and UN show that avoiding 2 degrees of warming relies on not burning 60-80% of discovered fossil fuels. 
• Repeated warnings by Bank of England Governor Mark Carney that “the vast majority of [fossil fuel] reserves are unburnable”.
• The resulting threat to pensions that are over-exposed to fossil fuels, and therefore to local pension-holders and council taxpayers.
• The shortage of investment into social housing, transport, and renewables.
• The importance of a just transition for workers in sectors and communities dependent on fossil fuels, and of decent and unionised low-carbon jobs.
• That several UK local government pension funds have committed to divesting, joining $6 trillion in fossil fuel divestment commitments worldwide.
• That UNISON (largest union representing local government workers) and the TUC campaign for divestment in line with obligations to pension-holders.

2. This Council resolves:

• To call on the council pensions committee to commit to divest from fossil fuels over the next 5 years.
• To call upon the council pensions committee to seek to reinvest into the just transition, where possible and in line with obligations to pension holders.’

Moved by Councillor Willis (no behalf of Cllr Ware-Lane)

Seconded by Councillor Dent