CLIMATE CHANGE RISK, FOSSIL FUEL DIVESTMENT AND THE PARLIAMENTARY PENSION FUND

That this House notes that approximately £500 million is invested in the UK and global economy through the Parliamentary Contributory Pension Fund; further notes the considerable academic and economic evidence from reputable sources, including the Bank of England and Carbon Tracker, that climate change poses a serious risk to returns on investment for pension holders; notes the growing fossil fuel divestment movement consisting of universities, churches, institutions, businesses, individuals and others who are shifting investment to low carbon alternatives instead of fossil fuels and undertaking investor stewardship to promote strong management of climate change risk within the corporate sector; considers that parliamentarians, past and present, should demonstrate leadership on responsible investment and tackling climate change by challenging and changing how the Parliamentary Pension Fund is invested; further considers that such action from parliamentarians would be a practical and positive move in advance of the Paris climate talks and would highlight the urgent need to shift financial flows away from fossil fuels and into low-carbon solutions and climate adaptation; and calls on the trustees of the Parliamentary Contributory Pension Fund to quantify and review the fund's investments in high carbon industries and the fossil fuel sector, and associated risks, to enter into discussions with members about addressing these risks and to develop an industry-leading approach to climate change in its investment strategy, with a view to divesting the Parliamentary Pension Scheme from fossil fuels over an appropriate timescale.