Themes:

Divestment: Getting Oil out of University Pensions and Investments

Divest Now

Local governments in the UK have pension funds worth over £230 billion. £14 billion of this – over 6% – is invested into fossil fuel corporations. In order for us to prevent a climate tragedy, we need to keep 80% of the worlds non-renewable energy sources (oil, gas and coal) in the ground

A lot of pensions at GSA and other Higher Education and public sector organisations invest in Strathclyde Pension Fund (the other major pension funds serving us aren’t much better, watch this video from Divest USS the largest of them all)

What does Strathclyde Pension Fund invest in?

At present, Strathclyde Pension Fund has £839 million invested in fossil fuels, including in Shell, ExxonMobil, BP and Chevron. These companies contribute to the destruction of the climate. Divestment from these companies is the only way to start making progress towards net zero.

Strathclyde Pension Fund also has £114.7 million invested in aerospace and defence, including £36.2 million invested in BAE Systems and 18.2 million in Airbus. Both BAE Systems and Airbus are currently subject to a complaint lodged by European and Yemeni groups which requests an investigation into whether these companies are responsible for aiding and abetting war crimes in Yemen. BAE’s aircraft have been used by Saudi Arabia in devastating attacks on Yemen, and have created a humanitarian disaster.

Divestment from fossil fuel and the arms trade

Although Glasgow City Council agreed a motion to divest from fossil fuels , the Strathclyde Pension Fund’s proposed fossil fuel divestment policy is feeble: it proposes a ‘traffic light system’ where companies are given a red, amber or green rating, but due to weak criteria and other factors most fossil fuel investments are likely to be retained.

The only way towards net zero is divestment from these companies immediately. UNISON general secretary Christina McAnea and deputy Scottish convenor Stephen Smellie signed an open letter condemning the suggestion of ‘constructive engagement’ with fossil fuel companies in 2020. The open letter stated that “investor pressure has never reshaped any company’s core business and cannot transform an entire sector of powerful multinationals” .

What happens if we divest?

Many pension funds have already begun to divest from fossil fuel and the arms trade, including the National Employment Savings Trust (Nest) scheme and the London Borough of Islington Pension Fund .
And divestment may be a prudent financial decision too: a report from Friends of the Earth Scotland states that by November 2020, the Local Government Pension Scheme had collectively lost £2 billion by not divesting from oil and gas . In contrast, sustainable funds have been shown in studies to deliver higher returns than traditional funds .

What can I do to show my support for DIVEST GSA?

Members of the Strathclyde Pension Fund can join DIVEST STRATHCLYDE to keep campaigning to divest from fossil fuels. You can also contact your local councillor via email, or on Twitter:
Richard Bell
Ruairi Kelly
David Meikle
Martha Wardrop
Graham Campbell

Student at GSA? There is a Divest GSA group asking GSA to divest from oil, gas, coal and arms.

Divest Strathclyde are a group based in Glasgow, campaigning for Strathclyde Pension Fund to divest (remove its investments) from the fossil fuel industry. Instead, the group calls for an ethical investment, which would help local economies and in the long term generate higher return than fossil fuels. See a Prezi on what we are aiming to do, or email John the SiAG’s Sustainability Coordinator to discuss fossil fuel divestment. You can also download a flyer or contact John for copies.

Private pension? Have a look at Make my Money Matter and make the switch to an ethical scheme.