Wiltshire Pension Fund has announced that it will divest from fossil fuels by 2030 as part of its net-zero strategy.

The Local Government Pension Scheme (LGPS) fund has already set a target to achieve net-zero carbon emissions across all of its investment portfolios by 2050.

Currently, the pension fund still holds some investments in fossil fuel companies, including firms involved in the exploration, mining, extraction, distribution, and refining of coal, oil fuels, and hydrocarbons.

Furthermore, this covers electricity producers with a high carbon intensity of lifecycle greenhouse gas emissions.

The pension fund stated that the total value of its holdings in shares of these companies amounts to just under 1 per cent of the fund’s total value.

Wiltshire Pension Fund noted that its investments are held in pooled investment vehicles alongside other investors, and there was a risk that these arrangements could impose limitations on the implementation of its divestment policy.

However, it said it had communicated its stance to Brunel Pension Partnership and other investment managers, and they were “actively collaborating” to navigate the challenges and progress towards its sustainability objectives.

“As a long-term investor, WPF's goal is to protect the investments from climate change risk, and safeguard the financial future of the fund,” Wiltshire Pension Fund said in a statement.

“We support a global warming scenario of well below 2°C, and have an ambition to achieve net-zero carbon emissions across all investment portfolios by 2050.

“We do not see a long-term place for fossil fuel investments in our portfolios, and will work towards being fully divested from these companies by 2030. In the short term we will continue to monitor our holdings in these companies, to ensure that any such investments are helping to finance real-world change.

“Alongside this, we will continue to invest in renewable infrastructure and climate solutions, to help create sustainable replacements for traditional fuel sources, and contribute positively towards ensuring energy security.

“This approach aims to ensure that the fund's risk of exposure to stranded assets is well managed, and that the fund can benefit from the investment opportunities presented by the transition to a low carbon economy.”

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