Agenda item

In accordance with Council Procedure Rule 11, Councillor George Potter to propose, and Councillor Steven Lee to second the following motion:

‘Council recognises that burning fossil fuels contributes significantly to global warming. Research demonstrates that 80% or more of the world’s fossil fuel reserves will have to remain unburnt if we are to meet targets for climate change mitigation. As four-fifths of known fossil fuels must remain in the ground investing in them now presents a substantial financial and environmental risk. Council notes the International Energy Agency has released modelling in 2021 predicting that global oil demand could peak as early as 2025, and that its Executive Director has referred to putting money into oil and gas projects as being potential ‘junk investments’.

Guildford Borough Council is a member of the Surrey Pension Fund, which currently has over £100 million invested in fossil fuel through its Local Government Pension Fund Scheme.

Council believes that this investment is both environmentally and financially irresponsible. Every indication points to renewable energies and green technologies being much safer investments for pension funds going forwards. With COP 26 having taken place in Glasgow the world’s eyes are on the UK to show leadership on climate change. Divesting from fossil fuels in our pension fund is a clear and meaningful action we can take here in Surrey.

Council recognises that fossil fuel investments should be considered part of the council’s ‘carbon footprint’ and that divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.

Council therefore commits to calling on the Surrey Pension Fund to divest from fossil fuels by requesting the Pension Fund Committee to adopt and implement responsible investment policies which:

(a)  Immediately freeze any new investment in the top 200 publicly-traded fossil fuel companies.

(b)  Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds by 2030.

(c)  Set out an approach to quantify and address climate change risks affecting all other investments.

(d)  Actively seek to invest in companies that will reduce greenhouse gas emissions and minimise climate risk.

(e)  Ensure that the overall investment portfolio is aligned with the Paris Agreement’s goal of limiting global warming to 1.5°C.

Council further instructs the Joint Chief Executive to write to the Leaders and Chief Executives of all other councils which are members of the Surrey Pension Fund to outline this Council’s position and ask for their support to adopt the same policies’.

In accordance with Council Procedure Rule 11, Councillor George Potter proposed, and Councillor Steven Lee seconded the following motion:

“Council recognises that burning fossil fuels contributes significantly to global warming. Research demonstrates that 80% or more of the world’s fossil fuel reserves will have to remain unburnt if we are to meet targets for climate change mitigation. As four-fifths of known fossil fuels must remain in the ground investing in them now presents a substantial financial and environmental risk. Council notes the International Energy Agency has released modelling in 2021 predicting that global oil demand could peak as early as 2025, and that its Executive Director has referred to putting money into oil and gas projects as being potential ‘junk investments’.

Guildford Borough Council is a member of the Surrey Pension Fund, which currently has over £100 million invested in fossil fuel through its Local Government Pension Fund Scheme.

Council believes that this investment is both environmentally and financially irresponsible. Every indication points to renewable energies and green technologies being much safer investments for pension funds going forwards. With COP 26 having taken place in Glasgow the world’s eyes are on the UK to show leadership on climate change. Divesting from fossil fuels in our pension fund is a clear and meaningful action we can take here in Surrey.

Council recognises that fossil fuel investments should be considered part of the council’s ‘carbon footprint’ and that divesting our pension fund is one of the most impactful steps we can take to reduce our impact on our community and the world.

Council therefore commits to calling on the Surrey Pension Fund to divest from fossil fuels by requesting the Pension Fund Committee to adopt and implement responsible investment policies which:

(a)  Immediately freeze any new investment in the top 200 publicly-traded fossil fuel companies.

(b)  Divest from direct ownership and any commingled funds that include fossil fuel public equities and corporate bonds by 2030.

(c)  Set out an approach to quantify and address climate change risks affecting all other investments.

(d)  Actively seek to invest in companies that will reduce greenhouse gas emissions and minimise climate risk.

(e)  Ensure that the overall investment portfolio is aligned with the Paris Agreement’s goal of limiting global warming to 1.5°C.

Council further instructs the Joint Chief Executive to write to the Leaders and Chief Executives of all other councils which are members of the Surrey Pension Fund to outline this Council’s position and ask for their support to adopt the same policies”.

After the debate, and before proceeding to the vote, the Council agreed to take a recorded vote in respect of the motion.

Upon the recorded vote being taken, the results of which were as follows, with 13 councillors voting in favour of the motion, 13 councillors voting against the motion, and 11 abstentions:

As the Mayor opted not to exercise a casting vote, the motion was lost for want of a majority, in accordance with Council Procedure Rule 19 (b).