Decision details

Further to Minute No. 52 of the Climate Emergency Advisory Committee (CEAC) meeting held on 18th January 2021, the Director of Resources submitted a report which presented for the Board’s consideration the Climate Emergency Advisory Committee’s recommendation to the West Yorkshire Pension Fund (WYPF) regarding the divestment from fossil fuels.

In introducing the report, the Executive Member highlighted that although the Council had no direct decision making powers over WYPF, it was appropriate to raise the issue of investment in fossil fuels with the Pension Fund in response to the Climate Emergency, and the prospect of such investments losing value. 

The Board discussed this matter in detail and acknowledged that the WYPF Board members had a duty to act in the best financial interests of its members. Also, Executive Board considered the role of the Council in this process and that of WYPF Board members.  Members also highlighted how the consideration of the report raised people’s awareness of the issue of climate change.  At the same time it was acknowledged that the recommendation of CEAC to divest from fossil fuels within three years was not supported due to the financial risks involved. The Council would look to receive information from WYPF regarding progress on divesting from fossil fuels at the appropriate time and in a way that minimised the risk of any losses being incurred.

RESOLVED – That the West Yorkshire Pension Fund be requested to:-

(i)  be explicit about acknowledging the Climate Emergency and the need to divest from fossil fuels;

(ii)  actively look to divest into alternative, cleaner investments with comparable returns; and

(iii)  report annually against the progress on divestment, specifically against the region’s declared net zero target.