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30th April 2015

Politicians at risk of losing out

Following our theme of talking about politicians (is there an election coming up by any chance?), MPs’ pension fund is at risk from fossil fuel investments, Green MP Caroline Lucas warns.

The £487 million UK MPs’ pension pot is in danger of taking a financial hit due to the failure of its trustees to acknowledge the economic risk posed by fossil fuel investments, a group of 11 MPs and two Lords have warned.

“Climate change has significant financial implications for pension funds. It is not merely a matter of morals or ethics… we remain concerned that a failure to acknowledge the risks of continued investment in fossil fuel industries would in fact be to the financial detriment of the scheme,” they write.

However, the chair of the MPs’ pension fund board of trustees, Labour MP Brian Donohoe, rejected the idea, saying the trustees’ lawyers had advised that for the trustees to exclude a sector would be incompatible with their “legal and fiduciary duties of investment.”

Oh dear, are they at risk of being penalised by their own lack of action……………..

Kind regards

Paul Hutchens

Managing Director

Eco2 Solar Ltd, Worcestershire, England