Our plan for fossil fuel divestment

In a determined stride towards a more sustainable financial future, Wiltshire Pension Fund (WPF) has officially declared its plan to divest from fossil fuels by 2030. We have set a target to achieve net-zero carbon emissions across all our investment portfolios by 2050, and this plan is one part of how we aim to achieve this goal.

 Wiltshire Pension Fund's Statement on Divestment:

As a long-term investor, WPF's goal is to protect the investments from climate change risk, and safeguard the financial future of the Fund. We support a global warming scenario of well below 2°C, and have an ambition to achieve net-zero carbon emissions across all investment portfolios by 2050. We do not see a long-term place for fossil fuel investments in our portfolios, and will work towards being fully divested from these companies by 2030. In the short term we will continue to monitor our holdings in these companies, to ensure that any such investments are helping to finance real-World change.  Alongside this, we will continue to invest in renewable infrastructure and climate solutions, to help create sustainable replacements for traditional fuel sources, and contribute positively towards ensuring energy security.  This approach aims to ensure that the Fund's risk of exposure to stranded assets is well managed, and that the Fund can benefit from the investment opportunities presented by the transition to a low carbon economy. 

 

 We are committed to transparency and information sharing. Currently, the Fund still holds some investments in companies meeting specific criteria defining "fossil fuel companies." These criteria include companies involved in exploration, mining, extraction, distribution, and refining of coal, oil fuels, and hydrocarbons. Additionally, it covers electricity producers with a high carbon intensity of lifecycle greenhouse gas emissions.

The total value of the Fund's holdings in shares of these companies amounts to just under 1% of the Fund's total value.

Many of these companies are featured in our "Top 10" analysis in the Fund's climate report (PDF) [2MB] (opens new window)  where active engagement and challenges to investment managers are being pursued.

Over the next year, we plan to uphold our commitment to transparency by publishing a comprehensive list of these holdings on our website. Furthermore, we will provide an analysis of whether these investments align with our divestment statement's goals and genuinely contribute to meaningful change.

Our investments are held in pooled investment vehicles, alongside other investors.  There is a risk that these arrangements may impose certain limitations on implementation of our divestment policy, as individual investors such as WPF may not be able to request the sale of specific stocks.  Nevertheless, we have communicated our stance to Brunel and other investment managers, and we are actively collaborating to navigate these challenges and progress toward our sustainability objectives.

By taking measured steps towards divestment from fossil fuels and actively engaging with our investments, Wiltshire Pension Fund aims to make a contribution to the global fight against climate change while ensuring the financial well-being of our members and future generations.

Responsible Investment Policy 2023. (PDF) [6MB] (opens new window)