Fossil fuel pension protest in Rochdale

Date published: 31 July 2023

A protest against the Greater Manchester Pension Fund investing in fossil fuels took place in Rochdale town centre on Friday (28 July).

Unison members and other campaigners met outside a meeting of the Greater Manchester Combined Authority (GMCA).

They want the mayor and council leaders to call on their Greater Manchester Pension Fund (GMPF) to get rid of its climate-damaging investments in Shell and other fossil fuel companies and to join the rest of GM in a commitment to net zero by 2038.

Campaigners say that other combined authorities such as West Yorkshire have called for divestment so there is no reason why GMCA should not do the same. 

“We want the mayor and all the GM council leaders to get their act together and push for GMPF to make a strong climate commitment for the sake of all its members. This means urgently planning to end investment in oil and gas,” said campaign member Maggie Walker. 

Rochdale Unison member Sam O’Brien added: "People in Rochdale are very concerned about climate change.

"We remember the floods of Boxing Day 2015 when the council offices, shops and homes were all flooded. We need councillors to agree to stop investing in Shell and BP which are determined to carry on polluting with no concern for the damage they are doing."

Campaigners point out that the GM fund is an outlier in the extent of its investments in fossil fuel companies.

Figures show that in 2020 the GM fund risked nearly four times as much of its holdings in fossil fuels (4.6%) than nearby Lancashire and Cheshire funds which had only 1.2% and 1%, respectively.

“I’m very worried about the climate emergency and the risk to my pension if fossil fuel stocks crash - how can I have faith that the GM pension fund is looking to the future of its members when it appears not to see the urgency of climate action,” said Joan Bennett, a GMPF pensioner. 

“GMPF has a net zero target of 2050. That’s far too late. We need to see an urgent plan for getting rid of their investments in Shell, BP and Total which aren’t aligned with the Paris climate accords. Just last month the Church of England decided to divest from fossil fuels. 

“Trying to persuade fossil fuel companies to change their climate-destroying activities is wasting valuable time and money. The GMCA and GMPF need to wake up to the climate emergency.”

A Greater Manchester Pension Fund spokesperson said: “The Greater Manchester Pension Fund takes its responsibilities very seriously in looking after the pension promises of more than 370,000 members, and its fiduciary duty in looking after the members’ interests and the assets of the Fund and to employers and taxpayers, who underwrite pension liabilities. 

“We are pleased to reassure Joan Bennett, a GMPF pensioner and other members of the fund who are either contributing their salaries or taking their pension that they are not taking any market risk whatsoever.  This is because the Local Government Pension Scheme is unlike most private sector schemes, where the benefits payable to members are always subject to the risk of scheme underperformance or even failure. Joan’s pension is payable according to statute and based on pay and service and guaranteed by Tameside Council regardless of how well or badly the money markets do.

“The fund through its asset ownership will continue to campaign for all companies that we have an interest in to clean up their act and become carbon neutral.  The fund will not shirk from its leadership role and disinvest allowing others who do not care about the environment to own those shares instead and fail future generations to come.

“The fund is operating within a clear ethical framework and seeking to change the behaviours of those companies we invest in to become carbon neutral whilst ensuring we protect the pensions of our members and reduce cost to taxpayers.

“The fund is working hard to achieve carbon neutral status as quickly as possible but it will not jeopardise hard earned pensions of our workers and pensioners or importantly increase the costs for hardworking taxpayers of Greater Manchester.”

The GMCA has also been contacted for comment.