Motion submitted in accordance with
Council Procedure Rule 14 as to Fossil Free Kirklees
To consider the following Motion submitted in the names of Councillors
Allison and Cooper;
“This Council recognises;
(i) the challenge and threat of
climate change to residents and global community.
(ii) that to keep global warming below 2oC we must operate within a
global carbon budget. 80% of existing fossil fuel reserves cannot be burned if
we are to keep below the internationally agreed climate change goal of keeping
below 2 degrees
(iii) the growing movement to
divest from fossil fuels in order to, in the words of Desmond Tutu, "break
their ties with corporations financing the injustice of climate change."
(iv) that there is also a strong financial case for divestment ,with
recent concerns raised by the Bank of England about 'unburnable carbon' and
significant financial risks posed by fossil fuel equities.
(v) that governments are increasingly controlling carbon emissions to
meet international targets; a large proportion of fossil-fuel reserves which
companies expect to extract will become stranded assets: a "carbon
bubble". Funds which are exposed to fossil-fuel equities when this bubble
bursts can expect to suffer considerable losses.
(vi) that Pension Fund Trustees owe fiduciary duties to scheme employers
and scheme members, and must act in the best long-term interests of fund
members.
This Council believes that;
The Director of Resources is requested to review the existing Treasury
Management Strategy, and present a report to Corporate Governance and Audit
Committee, Cabinet and Council to giving consideration to an additional
principle of avoiding direct investment in institutions with material links to
fossil fuel extraction as defined by the Carbon Underground 200 – the top 200
companies with the largest known carbon reserves (oil, gas and coal) by June
2016.
Kirklees Council will encourage other local authorities to similarly
reviewing their Fossil Fuel industry investments, by sharing this decision
through the Local Government Association and the West Yorkshire Combined
Authority.
Kirklees Council will use its influence to call on West Yorkshire
Pension Fund and other Funds where the Council appoints Trustees to review
investments in the fossil fuel industry (as defined by the Carbon Underground
200). Specifically Kirklees will ask our representatives on the West Yorkshire
Pension Fund - Investment Advisory Panel to call on all Pension Trustees to
exercise their fiduciary duty and to call for a review of WYPF fossil fuel
investments in the light of climate risk posed by fossil fuel equities.
Kirklees Council request that WYPF makes a commitment to wind down
exposure to the carbon underground top 200 fossil fuel companies over a 5 year
period.”
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