A Welsh local authority has voted to divest its local government pension scheme (LGPS) from fossil fuels as it moves towards more sustainable investments.

Powys County Council passed a motion by four votes which stipulated that the pension scheme would halt investments in fossil fuels.

The motion was put forward at a full council meeting by Green Party MP Emily Durrant.

Commenting, Councillor Durrant stated: “Fossil fuel companies are subsidised at the expense of the climate, our health and our future.

“We can no longer afford to ignore the fiscal cost of subsidising and investing in fossil fuels.”

The chairman of the pensions and investments committee, Councillor Peter Lewis, said that although he was happy to press ahead with the proposal, he warned that it there needs to be balanced outcome.

“Our fund is there for the members, they have paid in all their lives to have a pension,” he explained.

He noted that, although the scheme does invest in Shell, a firm heavily involved in fossil fuels, that same company is around 15-20 per cent renewable energy.

Lewis continued: “These companies are looking to transform the renewable industry.

“Yes we’ll consider all aspects, but we need to be mindful who’s coming up with the solutions for our future.”

Finance portfolio holder and councillor, Aled Davies, argued that, as the LGPS is currently in deficit, it was important that it gets the best possible returns on investments and believed that its choices should not be “constrained”.

He said: “At the current time we are putting an extra £750,000 from our revenue account to pensions every year.

“If our return falls that’s potentially an extra strain on our revenue account. We must not constrain our pension committee.

“These companies invest in hydrocarbons, pharmaceuticals and the farming industry it’s not just about fossil fuel.”

Councillor Jackie Charlton concluded the session, saying: “We have done a lot of research, and a number of county councils across Wales have already signed up to this.

“This supports what the Welsh Pension Partnership wants to achieve. I have a pension here, I want to see the best return on my money, but I also want to makes sure it’s ethical.”

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