Agenda item
MOTION - FUTURE PENSIONS FIT FOR PURPOSE
Minutes:
Councillor Jeff Green moved and Councillor Ron Abbey seconded a motion such that this item move straight to the vote without debate.
Upon being put to the vote this motion was carried (54:7) (Two abstentions).
Councillor Pat Cleary moved and Councillor Paul Doughty seconded the following Motion submitted in accordance with Standing Order 7 -
“Council welcomes the success of the Merseyside Pension Fund (MPF) in expanding its membership to over 137,000 and raising its fund value to £8.6 billion.
Council believes,
· the MPF has an important role to play in securing the future success and quality of life of our region by providing a reliable source of income to our ageing population and through its ability to invest funds wisely in the local economy.
· that climate change represents a systemic threat to the future value of financial assets and, as the Governor of the Bank of England has warned, a carbon budget consistent with the 2°C target laid down in the Paris Climate Accord “would render the vast majority of {fossil fuel} reserves stranded”.
Council therefore welcomes,
· the mandate from the Pensions Committee that MPF’s investment strategy be brought into line with the goals of the 2015 Paris Accord
· the recent launch on the London Stock Exchange by MPF of the All World Climate Balanced Comprehensive Factor Index with an initial funding of £400 million
· and the goals of the Index to achieve reductions in risk to future pensions via substantial cuts in exposure to companies with high fossil fuel reserves and high carbon emissions and increased exposure to companies with high exposure to “green” revenues
Council congratulates MPF officers on their efforts to protect its members from climate-related financial risk and looks forward to further, sustained work to fully align its investments with the goals of the Paris Accord.”
Amendment
Councillor Phil Gilchrist moved and Councillor Allan Brame seconded the following amendment submitted in accordance with Standing Order 12(1) such that the Motion be amended by the insertion of the following words after the final paragraph –
Council notes that the last Carbon Budget report was presented to Cabinet by Councillor Mooney on 10 February 2015:
http://democracy.wirral.gov.uk/documents/s50023323/Carbon%20Budget%20Report%202014-15.pdf
The Agenda for Budget Cabinet on 22 February 2016 stated that the Carbon Budget was to be presented at the Council Meeting in July 2016. It did not appear and, since then, that reporting appears to have ceased.
Wirral’s Climate Change Strategy was developed for the period 2014-19 and is due for updating and renewal:
and that the most recent progress report was the 4th Annual Progress Report of 'Cool Wirral', published in July 2018:
In this context, Members need to review this and the next report to ensure that Wirral Council can rise to the challenges.
Furthermore, the Wirral Biodiversity Action Plan adopted in 2013 could usefully be re-examined and updated
Council asks that these issues are taken on board by the current Cabinet Member and any successors to ensure they are followed up”.
As resolved above, Council proceeded to the vote without debate.
The amendment was put and carried (60:2) (One abstention).
The substantive motion, as amended, was put and carried and it was therefore -
Resolved (61:1) (One abstention) That
Council welcomes the success of the Merseyside Pension Fund (MPF) in expanding its membership to over 137,000 and raising its fund value to £8.6 billion.
Council believes,
· the MPF has an important role to play in securing the future success and quality of life of our region by providing a reliable source of income to our ageing population and through its ability to invest funds wisely in the local economy.
· that climate change represents a systemic threat to the future value of financial assets and, as the Governor of the Bank of England has warned, a carbon budget consistent with the 2°C target laid down in the Paris Climate Accord “would render the vast majority of {fossil fuel} reserves stranded”.
Council therefore welcomes,
· the mandate from the Pensions Committee that MPF’s investment strategy be brought into line with the goals of the 2015 Paris Accord
· the recent launch on the London Stock Exchange by MPF of the All World Climate Balanced Comprehensive Factor Index with an initial funding of £400 million
· and the goals of the Index to achieve reductions in risk to future pensions via substantial cuts in exposure to companies with high fossil fuel reserves and high carbon emissions and increased exposure to companies with high exposure to “green” revenues
Council congratulates MPF officers on their efforts to protect its members from climate-related financial risk and looks forward to further, sustained work to fully align its investments with the goals of the Paris Accord.
Council observes that this initiative, along with the Liverpool City Region Year of the Environment, presents opportunities for this Council to refresh and update its policies. It should also provide the trigger for actions which have not been taken for some time or are now due for updating. These need reviewing in the light of the current environmental crisis affecting many species.
Council notes that the last Carbon Budget report was presented to Cabinet by Councillor Mooney on 10 February 2015:
http://democracy.wirral.gov.uk/documents/s50023323/Carbon%20Budget%20Report%202014-15.pdf
The Agenda for Budget Cabinet on 22 February 2016 stated that the Carbon Budget was to be presented at the Council Meeting in July 2016. It did not appear and, since then, that reporting appears to have ceased.
Wirral’s Climate Change Strategy was developed for the period 2014-19 and is due for updating and renewal:
and that the most recent progress report was the 4th Annual Progress Report of 'Cool Wirral', published in July 2018:
In this context, Members need to review this and the next report to ensure that Wirral Council can rise to the challenges.
Furthermore, the Wirral Biodiversity Action Plan adopted in 2013 could usefully be re-examined and updated
Council asks that these issues are taken on board by the current Cabinet Member and any successors to ensure they are followed up.