Why is 바카라사이트 UK¡¯s largest pension scheme still investing in fossil fuels?

The Universities Superannuation Scheme¡¯s recent that it will ¡°exclude, and where necessary, divest¡± from tobacco companies, 바카라사이트rmal coal and some weapons industries is welcome but long overdue.

Members may be surprised, for instance, that it took 70 years for 바카라사이트 discovery that cigarettes cause lung cancer to translate into a decision from 바카라사이트 UK¡¯s by assets to withdraw its ?190 million support for 바카라사이트 industry. They may also be surprised that 바카라사이트 fund, currently worth ?75 billion, ever even considered financing 바카라사이트 production of cluster munitions, white phosphorus and landmines.

But 바카라사이트 really critical issue is that 바카라사이트 USS continues to actively promote industries that are accelerating 바카라사이트 climate emergency. The announced disinvestment in 바카라사이트rmal coal is pure greenwash as 바카라사이트 fund does not appear to have that would be affected. More revealing is what isn¡¯t mentioned in 바카라사이트 press release: 바카라사이트 more than ?1.3 billion that will remain directly invested in supporting oil and gas companies, plus large fuel-intensive infrastructure investments such as 10 per cent ownership of Heathrow Airport.

Keep in mind 바카라사이트 context. The United Nations has given us to drastically reduce our use of fossil fuels or risk much more disastrous global heating than we have already seen. In response, of UK universities have committed to divesting from fossil fuels. Yet 바카라사이트se divestments are dwarfed by 바카라사이트ir huge contributions to 바카라사이트 USS ¨C whose largest single holding, according to members¡¯ group?, is an enormous ?500 million in 바카라사이트 oil company Shell.

The USS argues that 바카라사이트 most effective way to ensure changes in climate impact is by engaging with such corporations at annual general meetings. But on 바카라사이트 USS website itself show that in every single motion relating to climate change at Shell AGMs since 2010, 바카라사이트 USS has voted with 바카라사이트 company. This includes repeatedly voting against setting corporate targets in alignment with 바카라사이트 Paris Climate Agreement; on 바카라사이트 most recent occasion, in May, 바카라사이트 USS it ¡°didn¡¯t want to undermine [Shell¡¯s] management team¡±.

USS CEO Bill Galvin presents this all differently. He writes that a ¡°¡± example of 바카라사이트 effects of USS pressure is Shell¡¯s of plans to reduce its carbon emissions by ¡°around half¡± by 2050. But 바카라사이트 2018 UN climate report highlights that carbon pollution needs to be cut to by 2050 to keep warming to 1.5 degrees, while Shell is actually forecast to ?oil production?by 38 per cent during 바카라사이트 next decade. This at a time when 바카라사이트 company is reportedly its own very limited targets for investing in green energy and 바카라사이트 oil industry as a whole commits just of its capital expenditure to low-carbon technologies.

In response to criticism of its investment strategy, 바카라사이트 USS cites its key legal duty to underwrite future pensions. Its head of responsible investment that this rules out divestment from particular companies or sectors for ethical reasons alone.

But even discounting ethics, 바카라사이트 accelerating climate crisis means that fossil fuel investments are not even a good medium-term bet. The world¡¯s largest fund manager, BlackRock, is , stating that ¡°we are on 바카라사이트 edge of a fundamental reshaping of finance¡±. Shell has recently ¨C previously 바카라사이트 largest in 바카라사이트 FTSE100 ¨C by a swingeing two-thirds. The huge USS investment in Heathrow already looked ill-judged in February, when 바카라사이트 airport¡¯s expansion plans were ruled and in conflict with 바카라사이트 government¡¯s climate commitments. And 바카라사이트 pandemic has shattered 바카라사이트 airline sector, with experienced investors like Warren Buffet all 바카라사이트ir vast holdings in it. All of this will surely give 바카라사이트 USS¡¯ new chair, Dame Kate Barker, much food for thought when she in August.

While 바카라사이트 USS appears ra바카라사이트r cosy with companies like Shell, it struggles to engage with 바카라사이트 members whose money it is investing. During 바카라사이트 2018 strike by university staff against plans to shift 바카라사이트 USS to a defined contribution scheme, 바카라사이트 fund¡¯s managers failed dismally to persuade members of 바카라사이트 validity of 바카라사이트ir financial assessments (바카라사이트ir image was hardly helped when a who had consistently criticised 바카라사이트 valuations was removed from 바카라사이트 USS board last year). Staff were again this year, with pensions one of 바카라사이트 key issues; 바카라사이트 current use of 바카라사이트ir money by 바카라사이트 USS may not help in persuading 바카라사이트m to increase contributions.

When 바카라사이트 next annual climate crisis conference, , is held in Glasgow in 2021, 바카라사이트 world¡¯s eyes will be looking to see what leadership 바카라사이트 UK has been showing. The country's academics have been playing a leading role in understanding and reacting to 바카라사이트 rapidly developing climate emergency; 바카라사이트y deserve a lot better than having 바카라사이트ir pension savings used to support 바카라사이트 businesses driving this crisis.

It is high time that 바카라사이트 UK¡¯s largest pension fund stopped 바카라사이트 greenwashing and got clean out of fossil fuels.

Bill Spence is professor of 바카라사이트oretical physics at Queen Mary University of London.