Welsh Pensions Partnership (WPP) at future investment crossroads

Crossroads moment for Welsh Pensions Partnership (WPP): Climate campaigners urge Wales Pension Partnership to invest in our future

On Wednesday 12th March, Climate campaigners will join other groups from across Wales to demonstrate at the quarterly Wales Pension Partnership (WPP) joint governance committee meeting in Swansea. They collectively demand that the Wales Pension Partnership (WPP), the local government pension scheme pool, strengthens its Responsible Investment policy. They are calling for funded activities to contribute to health and security for the Welsh people, instead of activities that fuel climate change and human rights abuses.

More than £125 million pounds, a freedom of information request reveals, could be repurposed to support projects that will build a greener and fairer future for Welsh communities. The divestment campaign group Divest Cymru say the request shows that in 2024 this money was invested in Shell, BP, Exxon and Total Energies, as well as large investments in other fossil fuel companies.

With recent pension reforms announced by Rachel Reeve’s in Westminster, it could be a crossroads moment for Welsh pensions. This Wednesday is an opportunity for the councillors representing the 8 constituencies to invest in the future of the nation:

• £125 million into the Green Economy in Wales could create jobs and provide cleaner and more affordable energy – bolstering economic security over fossil fuels.
• £10 billion, 54% of the investments made under the umbrella of the WPP, are at risk of financing deforestation (A figure revealed by investigations by campaigning organisations Size of Wales and Global Canopy), a key driver of climate change and associated with human rights abuses. Instead this money could be supporting reforestation projects to benefit biodiversity and give more people access to nature.
• In addition, it is claimed (through research from Palestine Solidarity Campaign) that £1.1 billion of investments managed through the WPP are funding companies that are contributing to the development of illegal settlements on the Palestinian West Bank and arms manufacturers whose weapons have been used in indiscriminate attacks in Gaza. This money could be diverted to supporting the wellbeing of local community and family schemes, improving prospects for future generations.

These investments have continued despite clear evidence from global providers of finance analytical tools, such as Morgan Stanley and Standard and Poor’s, that since 2010 fossil fuel investments have delivered significantly poorer returns for fund members.

Sam Ward, Head of Climate Cymru noted:

“Most people would be shocked to know that the public pensions are supporting arms dealers, climate-wrecking fossil fuel companies and deforestation around the world. The green economy is outperforming the wider economy in the UK so it doesn’t even make financial sense to support such evil corporations.”

“If we do it right, climate action can meaningfully improve our lives and bring a far better future to Welsh communities. This money could be delivering great returns whilst helping us get there.”