Local Government: Pension Funds

(asked on 12th January 2018) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what his policy is on local government pension funds being used to invest in fossil fuels; and if he will make a statement.


Answered by
Rishi Sunak Portrait
Rishi Sunak
Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
This question was answered on 22nd January 2018

The government does not prescribe centrally where local government pension funds should invest their assets. Funds are responsible and accountable for their own decisions, provided that they act reasonably and follow the Local Government Pension Scheme Investment Regulations 2016 and associated guidance.

Local government pension funds should make the pursuit of a financial return their predominant concern but they may also take into account purely non-financial considerations provided that doing so would not involve a significant risk of financial detriment and they have good reason to believe that scheme members would support their decision.

Funds are required to set out their policy on how environmental, social or corporate governance concerns are taken into account in their Investment Strategy Statement. The Regulations also require this statement to be published and kept under review.

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