Pension Fund divests from tobacco, thermal coal and tar sands

Employees at local councils and other organisations who pay into a major pension scheme have been told that an important step has been taken as part of a strategy to invest sustainably.

Investments into companies that derive significant revenues from thermal coal, tar sands and tobacco production have been excluded from investments by the county’s Pension Fund Committee, which we host, with representatives from other organisations as members.

With the adoption of a new responsible investment policy at its September meeting, the committee decided to exclude investments in thermal coal, as it is by far the highest carbon-emitting source of energy; tar sands, as it is among the most carbon-intensive means of crude oil production; and tobacco, as its products are responsible for killing up to eight million people a year.

The policy also excludes companies producing controversial weapons where their use is complicit in breaches of United Nations’ human rights standards.

The Oxfordshire Pension Fund is committed to actively engaging with the companies it invests in, as this approach is in the long-term interest of the company, investors, and broader society.

However, it is unlikely that engagement with the companies that have significant activities in these areas will lead to meaningful change in their behaviour.

The fund and its investment pool manager Brunel will, therefore, concentrate engagement efforts on sectors and companies where engagement will be more effective.