Financial players including HSBC, the World Bank and the Bank of England are increasingly warning of the financial risks associated with fossil fuel investments, because i. In order to stay within the internationally agreed target of maximum 2℃ warming, 80% of fossil fuels companies’ existing reserves cannot be used.
Factors such as the astronomical costs associated with new extraction projects, commodity price volatility, demand fluctuations, robust climate regulation and a rapid decline in clean energy costs are increasing the risk profile of fossil fuel investments.
Equally important is the fact that climate change is the most significant threat to our long term health and prosperity. The impacts of climate change, including flooding, heat waves and crop failure, are already being felt around the world. Investing your savings in fossil fuel companies profits from and exacerbates the damage done by climate change.
Although the LPFA has taken important steps to mitigate its climate impact, it still has £38m substantial direct and indirectly invested in some of the world’s biggest fossil fuel polluters, including Shell and BP, and supports the Canadian tar sands.
Around the world, institutions such as the World Council of Churches, the British Medical Association and the Norwegian Sovereign Wealth Fund, are taking a stand to preserve their investments and support climate action by committing to divest from fossil fuel companies.
Protecting our future requires us to take urgent action now. By committing to divest from fossil fuels the LPFA can safeguard members’ savings and send a clear message about the action we need to protect our planet.
This is your money and your opportunity to influence how it is invested. You can call on the LPFA to protect your pension from these potential stranded assets and add your voice to support a move to a more sustainable future by emailing the fund’s Chairman, Merrick Cockell.