Protest set to take place over Welsh public sector pension scheme’s funding of genocide and climate crisis

On Wednesday 12 March, climate campaigners will join other groups from across Wales to demonstrate at the quarterly Wales Pension Partnership joint governance committee meeting in Swansea.

They collectively demand that the Wales Pension Partnership (WPP), the local government pension scheme pool, strengthens its Responsible Investment policy. They are calling for funded activities to contribute to health and security for the Welsh people, instead of activities that fuel climate change and human rights abuses.

Wales Pension Partnership: investing in fossil fuels

More than £125 million pounds, a freedom of information request reveals, could be repurposed to support projects that will build a greener and fairer future for Welsh communities. The divestment campaign group Divest Cymru say the request shows that in 2024 this money was invested in Shell, BP, Exxon and Total Energies, as well as large investments in other fossil fuel companies.

With recent pension reforms announced by Rachel Reeve’s in Westminster, it could be a crossroads moment for Welsh pensions. This Wednesday is an opportunity for the councillors representing the eight constituencies to invest in the future of the nation:

• £125 million into the Green Economy in Wales could create jobs and provide cleaner and more affordable energy – bolstering economic security over fossil fuels.
• £10 billion, 54% of the investments made under the umbrella of the WPP, are at risk of financing deforestation (a figure revealed by investigations by campaigning organisations Size of Wales and Global Canopy), a key driver of climate change and associated with human rights abuses. Instead this money could be supporting reforestation projects to benefit biodiversity and give more people access to nature

In addition, it is claimed (through research from Palestine Solidarity Campaign) that £1.1 billion of investments managed through the Wales Pension Partnership are funding companies that are contributing to the development of illegal settlements on the Palestinian West Bank and arms manufacturers whose weapons have been used in indiscriminate attacks in Gaza. This money could be diverted to supporting the wellbeing of local community and family schemes, improving prospects for future generations.

Protests

These investments have continued despite clear evidence from global providers of finance analytical tools, such as Morgan Stanley and Standard and Poor’s, that since 2010 fossil fuel investments have delivered significantly poorer returns for fund members.

The Wales Pension Partnership argues that it works with companies to improve their performance in areas such as the environment, human rights and governance.

However, Divest Cymru claims that these efforts have failed abysmally, as illustrated by recent decisions by BP and Shell to water down their climate targets. The group also points out that, since its establishment in 2017, the WPP has never withdrawn investments because of concerns over a company’s environmental policies.

The various campaigning groups will be present at the meeting of the WPP in Swansea on 12 March to make their feelings known.

A non-fossil-fuel-breathing dragon will be attending, and people will have an opportunity to offer their suggestions for alternative investments.

Wales Pension Partnership: end these destructive investments

Heather Bolton of North West Wales Climate Action commented:

These destructive investments by WPP have to stop. There are so many other investment opportunities that offer good returns in sectors such as renewable energy and social and affordable housing.

Alison Shaw of Divest Cymru added over the Wales Pension Partnership:

The largest pension fund in the Netherlands has already dropped investments in fossil fuel companies and is now committed to cutting all investments with a large climate impact. Why is Wales lagging so far behind? We are asking WPP to adopt a much stronger approach to responsible investment – one that will benefit people and nature in Wales and globally.

Sam Ward, Head of Climate Cymru noted:

Most people would be shocked to know that the public pensions are supporting arms dealers, climate-wrecking fossil fuel companies and deforestation around the world. The green economy is outperforming the wider economy in the UK so it doesn’t even make financial sense to support such evil corporations.”

If we do it right, climate action can meaningfully improve our lives and bring a far better future to Welsh communities. This money could be delivering great returns whilst helping us get there.

Featured image via the Canary