At the full Merton council meeting on 15th September Merton Lib Dems will be asking the council to live up to its obligations after its Climate Emergency declaration and divest its pension investments from supporting fossil fuels.
Details of the Motion to Council are below.
This Council notes that:
- A ‘Climate Emergency’ was declared by this Council in July 2019.
- Burning fossil fuels poses a serious risk to the stability of the climate upon which our well-being and economy depend, and research demonstrates that up to 80% world’s proven fossil fuel reserves will have to remain unburnt if we are to have a reasonable chance of keeping global warming to less than 2 degrees Celsius.
- Four London Borough local authority pension funds have committed to full divestment, including: London Borough of Waltham Forest in September 2016; London Borough of Southwark in December 2016; London Borough of Islington in September 2018; and, London Borough of Lambeth in December 2018.
This Council believes that:
- The Council should invest its pension funds in ways that support our Climate Emergency declaration; and - Since 80% of fossil fuels must remain in the ground, the reserves of the fossil fuel industry risk becoming ‘stranded assets’ with little or no value – representing a substantial financial risk for those that invest in them.
The Council calls on Merton’s Pension Committee to divest from fossil fuels and adopt responsible investment policies which
- rule out new investments in fossil fuel companies; and
- divest from direct ownership and any commingled funds that include fossil fuel
public equities and corporate bonds within three years.