Luton Borough Council backs pension divestment from fossil fuels

Luton Borough Council is supporting a motion to withdraw pension funds from fossil fuel firms

A town council has unanimously passed a motion calling for its pension fund to disinvest its holdings of almost £40m in fossil fuel firms.

Luton Borough Council is calling for Bedfordshire Pension Fund (BPF) administrators to swap investment in fossil fuel companies for those that will help reduce greenhouse gases.

The ruling Labour motion was backed by the Liberal Democrats' leader.

BPF handles pensions of local government staff across Bedfordshire.

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The resolution requested that pension administrators carry out an assessment of the pension portfolio with a view to disinvesting in coal, oil and gas companies by 2023.

Labour councillor Tom Shaw referred to the contradiction of spending millions on the council's green agenda if nothing was done about the investment of the pension fund "in the very industries causing the problems".

At the recent COP26 summit countries agreed to "phase down" coal investment and mining

The BPF has a responsible investment policy, which it says "means considering environmental, social and governance issues when making decisions about investments".

Divest Luton supporter Brenda Slessor told the Local Democracy Reporting Service: "These holdings are stranded assets. Fossil fuels don't have a future and tying recipients of the pension fund to a failing industry is the opposite of a responsible investment."

Campaigners say their focus will now be on whether the Bedford Borough Council Liberal Democrat and Labour coalition will support the divestment of the Bedfordshire Pension Fund from fossil fuels.

The matter will also go before Central Bedfordshire's council leader and the Mayor of Bedford.

The BPF has been contacted for comment.