The Mayor of London, Sadiq Khan, is today calling on local authorities from across the capital to join him in fighting climate change by divesting their pension funds from fossil fuel companies.
Local Labour Parties in Lambeth and Islington just committed to back divestment in their 2018 election manifestos, published this weekend. Other commitments are expected over the next month as more manifestos are published.
Good to see @SadiqKhan taking a lead on reducing fossil fuels. We’ve committed in our manifesto that “we will work towards divesting from fossil fuels and invest our pension fund in a socially and financially responsible way” https://t.co/1qL4vCW9sD #betterfairerLambeth pic.twitter.com/pr5inxLxS8
— LambethLabour (@LambethLabour) March 26, 2018
A number of London’s boroughs, including Waltham Forest, Southwark, Hackney and Hammersmith & Fulham, have already made commitments to work with their pension funds on divestment and investments in clean projects, and the Mayor wants to see more boroughs sign up to the commitment and share best practice.
Sadiq is already delivering one of the strongest and most ambitious divestment plans of any world city, as he promised in his manifesto. Last year the London Pension Fund Authority agreed a climate change policy. This committed it to no longer consider new active investments in fossil fuel companies that are directly engaged in the extraction of coal, oil and natural gas as sources of energy, which are ignoring the risks of climate change and unable to demonstrate planning for the global transition to a low-carbon economy and for future emissions reduction targets under the Paris Agreement.
Sadiq is now calling on London boroughs to follow his lead in working with pension fund managers to recognise the risk of climate change to their investments and starting to divest from fossil fuels and invest in more clean projects.
The Mayor of London, Sadiq Khan, said: “I made a manifesto commitment to take all possible steps to encourage the LPFA to divest its remaining investments in fossil-fuel industries that damage the environment and lead to climate change.
“Over the last two years my team has been working closely with the LPFA to deliver on this pledge, and the policy they have put in place is a strong and sophisticated one that recognises the risks to pension funds if no action is taken. LPFA is now working hard to implement its policy so that the necessary action can be taken by 2020, in line with the commitments it has made.
“I am now calling on local authorities across the capital to join me in taking their pension funds out of companies that can damage the planet and lead to climate change. By working together, we will have a louder voice to convince polluting firms to change their ways in order to tackle climate change.”