In the interest of clarity, all Members and Officers who were Members of the West Yorkshire Pension Fund declared an interest in the item relating to the item on the West Yorkshire Pension Fund Disinvestment from the Fossil Fuel Industry (Minute 47).

ACTION: City Solicitor

Recommended –

That the minutes of the meeting held on 7 September 2016 be signed as a correct record (previously circulated).

(Yusuf Patel – 01274 434579)

Resolved –

That the minutes of the meeting held on 7 September 2016 be signed as a correct record.

There were no appeals submitted by the public to review decisions to restrict documents. 

There were no referrals made to this Committee at the time of publication.

There were no referrals made to the Committee.

At its meeting on Tuesday 20 October 2015, Council agreed that the Governance and Audit Committee and the Corporate Overview and Scrutiny Committee complete a joint review of investment in the fossil fuel sector and the implications for the West Yorkshire Pension Fund, the District and its current and retired public sector workers of any programme of disinvestment and report back to Council.

The Director of the West Yorkshire Pension Fund will submit a report (Document “T”) which sets out a review of investment in the fossil fuel sector and the implications for the West Yorkshire Pension Fund, the District and its current and retired public sector workers of any programme of disinvestment.

Recommended –

That the Committee:-

(1)  Notes that WYPF investment decisions are made by the Investment Advisory Panel which includes representatives of all West Yorkshire Districts as well as other interested parties, and not Bradford alone.

(2)  Notes that the Investment Advisory Panel considers the annual report of the Local Authority Pension Fund Forum which includes engagement activities with fossil fuel companies.

(3)  Agrees with the policy of positive engagement set by the Investment Advisory Panel.

(4)  Welcomes the progress achieved towards ensuring that the fossil fuel companies revise their business plans to take account of the COP21 agreement.

(5)  Welcomes continuing investment in green energy technology and production as the industry develops.

At its meeting on Tuesday 20 October 2015, Council agreed that the Governance and Audit Committee and the Corporate Overview and Scrutiny Committee completes a joint review of investment in the fossil fuel sector and the implications for the West Yorkshire Pension Fund, the district and its current and retired public sector workers of any programme of disinvestment and report back to Council.

A Member stated that the original Council motion had requested that a joint review should be undertaken between this Committee and the Governance and Audit Committee, and he ascertained why this process had not been adhered to.  In response the Locum Assistant City Solicitor stated that in the context of workloads it may have been decided between the respective Chairs that only the Corporate Overview and Scrutiny Committee looks at the issue.  A former Member of the Governance and Audit Committee stated that he had been privy to some of the discussions, and it had been suggested that any governance related issues arising from this review would be considered by the Governance and Audit Committee.

The Director of the West Yorkshire Pension Fund submitted a report (Document“T”) which set out a review of investment in the fossil fuel sector and the implications for the West Yorkshire Pension Fund.  The Director gave a detailed overview of the Pension Fund and the potential implications from disinvestment from the fossil fuel industry, which were set out in the report.

A Member of the West Yorkshire Pension Fund Joint Advisory Group explained that the Investment Panel continuously looked at the investment portfolio and made decisions on investment opportunities accordingly, in order to safeguard the pension scheme and get the best returns.

The Deputy Chair of the West Yorkshire Pension Fund was also present and stressed that in his discussions with companies such as BP and Shell, that they were already being lobbied and encouraged to invest more in renewables and that they acknowledged that the 2 degrees centigrade global temperature rise goal should be adhered to.  He also highlighted that if gas was stored correctly that it was extremely carbon efficient. He urged that the lobbying should continue as companies had changed their policies in a number of environmental areas.

A Green Party Councillor was present at the meeting and stated that the report failed to highlight any tangible changes in the area of disinvestment and that essentially fossil fuel extraction would continue, resulting in more greenhouses gases being released into the atmosphere.  That although she appreciated that it would take over a decade to fully disinvest, a review should be undertaken to start the process and assess the viability of disinvestment.

A representative from the West Yorkshire Disinvestment Campaign group was present and stated the following points:

·        That they welcomed the Council’s consideration of the financial risks to the pension fund from continued investment in fossil fuel corporation and its on going efforts to engage companies to change their business practices to be more in line with  ...  view the full minutes text for item 47.