Are Phuket UK Pensions affected?
Many reports over the last week surfacing regarding the fact that 6% of pension scheme investments from 101 local government pension schemes are allocated within fossil fuel projects.
It appears that Teachers, Social workers, and council employees throughout the UK are realizing that a considerable portion of their pensions is being placed within fossil fuel investments.
In total, government pensions amount to assets that are worth Â£231 billion. Such assets are intended to serve as the state-backed retirement package for 4.6 million civil servant workers. In particular, £14 billion of such assets are being placed into investments that deal with coal, oil, and natural gas operations.
When looking at the matter in more detail, there are currently 101 local government pension schemes that have been contributed by the UK’s 418 councils.
In particular, the Greater Manchester scheme holds £1.3 billion in fossil fuel stocks. This amounts to 9.8% of its total assets. The Strathclyde scheme too holds considerable assets in fossil fuels, with Â£752 million being invested into coal, oil, and natural gas companies.
The London Borough of Merton Pension Fund is perhaps the most notable, with 11% of its total assets being held in crude fuel options.
Whilst it is common for pensions to be invested into various securities, the considerable investment in fossil fuels may place these funds at risk.
Phuket UK Pensions
Hopefully, a few of the retirees in Phuket will be involved, whilst many suffer the effects of a strong Thai Baht when converting Sterling over recent weeks this situation has improved as the Baht starts to weaken or correct to levels in line with the rest of the region.
Phuket Island Radio is considering Â running a series on Phuket UK pensions, would you like to participate.
Meanwhile, the Bank of England, the World Bank, the G20, and numerous city analysts share the opinion that excessive reliance on fossil fuel investments could potentially result in substantial financial losses, especially if regulations on carbon emissions become more strict and enforced.
Furthermore, many of these pension holders have expressed their concerns over contributing to industries that have consistently been at the centre stage of environmental controversies. Multiple institutions throughout the world, such as the state pensions seen within California, have gone so far as to sell their stake in fossil fuel investments so that the impact on climate change would hopefully be reduced.
These institutions even argue that selling such assets brings only further security and value to their portfolios, especially during a time where oil prices have seen underperforming results.
UK pension contributors have already voiced their concerns, as Danni Paffard of 350.org stressed, “Public investments in fossil fuels are fuelling dangerous climate change, and present a threat to the pensions of public sector workers.
There’s a strong ethical and financial case for local councils to divest from fossil fuels and reinvest into infrastructure fit for the 21st century.”
When considering the financial implications alone, Natalie Smith of Client Earth illustrated,
“There is a growing body of evidence suggesting that the financial risks associated with climate change will impact investment portfolios.
If pension fund trustees fail to properly manage these risks and the value of the pension pots of members declines as a consequence, then trustees and investment managers could be sued for breaching their fiduciary duties.”
The Greater Manchester Pension Fund reacted by releasing a statement that suggested, “It is critical that we assess all financial risks to the fund, including those posed by fossil fuels.” However, for the moment, the scheme has confessed how “There are no plans to disinvest from fossil fuel companies in the medium term.”
Meanwhile, a spokesperson from Merton council assured how their respective pension scheme has invested Â£4.6 million into energy efficiency projects since 2010.
The spokesperson said,
“The law demands any pension fund’s investment managers seek to maximise returns for staff. However, Merton Council itself has a proud track record of investing in sustainability.”
Are you worried about this situation? Please do let us have your feedback and if you would be prepared to take part in a discussion later on Phuket Island Radio. Please contact us at email@example.com
Excerpts reproduced with permission from devere-group.com
Image credit hrmagazine.co.uk