Agenda item
Notice of Motion - Divesting the Greater Manchester Pension Fund from Fossil Fuels
On 10 July 2019 this Council stated that there are serious risks to Manchester's people, of climate change/global heating affecting economic, social and environmental well-being, supply chains – including financial systems, among many others.
The Council agreed to declare a Climate Emergency and to continue working with partners across Manchester and GMCA to become a zero-carbon city by 2038, and determine if an earlier target can be possible, through a transparent and open review as well as become carbon neutral by the earliest possible date.
On that day this council also agreed that through our role on the Greater Manchester Pension Fund to encourage divestment in fossil fuels as early as possible.
This Council notes:
· The Greater Manchester Pension Fund (GMPF) has at least £1.3bn of our public sector pension fund money in the fossil fuel industry including Shell, BP, TotalEnergies, Glencore, Legal and General amongst dozens of companies.
· This constitutes approximately 6% of the GMPF’s fund.
· The Labour Party manifesto 2024 stated: “... mandating UK-regulated financial institutions – including …pension funds, and insurers… to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement.”
· The Greater Manchester Pension Fund has set a goal of 2050 for reaching net zero carbon emissions, even though the Greater Manchester Combined Authority has set a more ambitious goal of 2038 to reach the same target.
· The fiduciary duties of the GMPF are compatible with fossil fuel divestment as evidenced by the many public sector and other pension funds, including local government ones, who are performing significantly better than GMPF on reaching zero carbon.
· GMPF, one of the largest pension funds in the UK, consistently has one of the highest percentages of its funds in fossil fuels across local government pension funds in England.
· Fossil fuel investments risk becoming stranded assets as decarbonisation efforts intensify.
· Unison, the public service union, runs a long standing campaign on fossil fuel divestment from local government pension funds and joined this year the campaign for a new international Fossil Fuel Non-Proliferation Treaty to speed up the move away from fossil fuels.
· That fossil fuel investments should be considered as part of the council’s “carbon footprint” and divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.
This Council resolves:
(1) To ask GMPF to develop and implement a clear transition plan that aligns with the 1.5C goal of the Paris agreement with sign off agreed within the next 12 months.
(2) To ask GMPF to implement a robust and transparent reporting mechanism to evidence progress on this plan.
(3) To ask the GMPF to align with the GMCA target of 2038 for achieving net zero carbon emissions, rather than 2050 and to incorporate a clear medium term 2030 target towards achieving net zero.
(4) To mandate our representative on the GMPF to call for and work towards divestment.
(5) To write to the Mayor of Greater Manchester and the leaders of the other nine Greater Manchester councils to ask them to join us in these calls.
Proposed by Councillor Johnson, seonded by Councillor Wiest and supported by Councillors Abdullatif, Leech, Northwood and Nunney.
Minutes:
In advance of the meeting, Councillor Johnson had written to the Chief Executive informing him of her decision to withdraw this motion owing to her not being able to attend the Council meeting due to illness.