Data on pension fund investments by local authorities released today revealed that the Isle of Wight council is investing £43m of Isle of Wight tax payers’ money into coal, oil, and gas companies.
Keith Taylor, Green MEP for the South East, has condemned Isle of Wight Council, saying,
“It’s shocking to see such huge sums of Isle of Wight taxpayers’ money pumped into climate destructive, financially risky and, frankly, morally bankrupt industries.”
Diverse range of investments to “maximise return”
In response, the Isle of Wight council say they do not restrict investment managers on what stocks they can invest in,
A spokesperson for the council told OnTheWight,
“The Isle of Wight Council Pension Fund has a fiduciary duty to ensure it has sufficient funds available to pay pensions.
“In light of that obligation, and in order to maximise investment return, the fund has a diverse range of investments and does not restrict investment managers from choosing certain stocks including oil/gas/coal companies as well as renewable energy opportunities.
“The investment strategy is regularly monitored.”
Taking environmental considerations seriously
A spokesperson for Investment Managers, Ayres Punchard told OnTheWight,
“It is our belief, as a sustainable investment specialist, that avoiding investment in fossil fuels is not difficult, and will be increasingly important as investors seek to reduce the risk of carbon linked penalties affecting their returns.”
Speaking at the Thompson Reuters Lipper European Alpha Expert Investment Conference in London’s Canary Wharf on Tuesday, the company’s managing director, Chris Welsford, highlighted the importance of taking Environmental, Social, and Governance factors into account when designing sustainable investment portfolios:
“Taking environmental considerations seriously can help reduce risk and boost sustainability for an investment portfolio and many pension fund investment committees already recognise this to be an important part of their work.”
Image: davidedamico under CC BY 2.0
