Agenda item

34.1     Julia Hilton (a representative of the petitioners) addressed the County Council prior to the debate. The Council agreed to vary procedure to enable all councillors who wished to speak to do so.

34.2     The following motion was moved by Councillor Bennett and seconded:

In order to maintain the momentum of its responsible approach to Environmental, Social & Governance (ESG) considerations consistent with the Paris Agreement and the Special Report of the Intergovernmental Panel on Climate Change (2019), and building on the substantial progress on ESG matters made over the last 36 months by the Committee, this Council agrees to:

1.    Recognise the concerns raised through the petition.

2.    Note that the East Sussex Pension Fund is already recognized as having a strong approach to socially and environmentally responsible investment with a below benchmark exposure to both carbon and fossil fuels.

3.    Request that the Pension Committee asks its investment consultants to undertake a further investigation, with particular focus on the long term risks and opportunities to the Fund associated with climate change, and report back to the Committee on how, in the light of its need to fulfil its obligations to all pension scheme employers and members, it might further integrate ESG considerations including those relating to its approach to fossil fuel exposure, into its investment strategy.

34.3     The following amendment was moved by Councillor Stephen Shing and seconded:

To delete the motion and replace with –

The County Council agrees:

1)    To note that the Council’s current policy of “engaging” with fossil fuel companies has been unsuccessful, and its continued investments in fossil fuels are “no longer aligned with the interests of the East Sussex Pension Fund” and pose “a material financial risk” to the Fund

2)    that, in line with its Responsible Investment Policy, the East Sussex Pension Fund: (a) immediately freezes any new investment in the top 200 publicly-traded fossil fuel companies; and (b) divests from its existing investments in these companies within five years.

34.4     A recorded vote on Councillor Stephen Shing’s amendment was requested and taken. The amendment was LOST, the votes being cast as follows

FOR THE AMENDMENDMENT

Councillors O’Keeffe, Daniel Shing, Stephen Shing and Webb

AGAINST THE AMENDMENT

Councillors Barnes, Beaver, Belsey, Bennett, Bentley, Boorman, Bowdler, Charman, Charles Clark, Martin Clarke, Godfrey Daniel, Davies, Chris Dowling, Claire Dowling, Earl-Williams, Elford, Elkin, Enever, Ensor, Fox, Galley, Glazier, Liddiard, Loe, Maynard, Pragnell, Scott, Sheppard, Simmons, Smith, Standley, Stogdon, Taylor, Tidy and Whetstone

ABSTENTIONS

Councillors Philip Daniel, Field, Grover, Lambert, Osborne, Rodohan, Shuttleworth, Swansborough, Tutt, Ungar and Wallis

34.5     The following amendment was moved by Councillor Tutt and Seconded:

To delete the motion and replace with –

That East Sussex County Council believes that it would be possible for East Sussex Pension Fund to obtain either the same or greater return for the fund by divesting from shares in the fossil fuel based companies within their portfolio. To do so would also remove the financial risk that the fund has recognised such investments bring. 

The Council therefore requests that the fund issue immediate instructions to their investment consultants (Hymans Robertson) to provide an analysis of the implications of fossil fuel divestments and its associated risks and opportunities. The outcome of such analysis will allow the fund to decide on whether it can meet its long term strategic objectives if it divests current fossil fuel holdings.

34.6     A recorded vote on Councillor Tutt’s amendment was requested and taken. The amendment was LOST, the votes being cast as follows

FOR THE AMENDMENDMENT

Councillors Charman, Charles Clark, Godfrey Daniel, Philip Daniel, Field, Grover, Lambert, O’Keeffe, Osborne, Rodohan, Scott,  Daniel Shing, Stephen Shing, Shuttleworth, Swansborough, Tutt, Ungar and Wallis

AGAINST THE AMENDMENT

Councillors Barnes, Beaver, Belsey, Bennett, Bentley, Boorman, Bowdler,  Martin Clarke, Davies, Chris Dowling, Claire Dowling, Earl-Williams, Elford, Elkin, Enever, Ensor, Fox, Galley, Glazier, Liddiard, Loe, Maynard, Pragnell, Sheppard, Simmons, Smith, Standley, Stogdon, Taylor, Tidy and Whetstone

ABSTENTIONS

Councillor Webb

34.7     A recorded vote was requested and taken on the motion moved by Councillor Bennett as follows:

In order to maintain the momentum of its responsible approach to Environmental, Social & Governance (ESG) considerations consistent with the Paris Agreement and the Special Report of the Intergovernmental Panel on Climate Change (2019), and building on the substantial progress on ESG matters made over the last 36 months by the Committee, this Council agrees to:

1. Recognise the concerns raised through the petition.

2.    Note that the East Sussex Pension Fund is already recognized as having a strong approach to socially and environmentally responsible investment with a below benchmark exposure to both carbon and fossil fuels.

3.    Request that the Pension Committee asks its investment consultants to undertake a further investigation, with particular focus on the long term risks and opportunities to the Fund associated with climate change, and report back to the Committee on how, in the light of its need to fulfil its obligations to all pension scheme employers and members, it might further integrate ESG considerations including those relating to its approach to fossil fuel exposure, into its investment strategy.

34.8     The motion was CARRIED with the votes being cast as follows:

FOR THE MOTION

Councillors Barnes, Beaver , Belsey, Bennett, Bentley, Boorman, Bowdler,  Charman, Charles Clark, Martin Clarke, Godfrey Daniel, Philip Daniel, Davies, Chris Dowling, Claire Dowling, Earl-Williams, Elford, Elkin, Enever, Ensor, Field, Fox, Galley, Glazier, Grover, Lambert, Liddiard, Loe, Maynard, O’Keeffe, Osborne Pragnell, Rodohan, Scott, Sheppard, Daniel Shing, Stephen Shing, Shuttleworth, Simmons, Smith, Standley, Stogdon, Swansborough,  Taylor, Tidy, Tutt, Ungar, Wallis and Whetstone

AGAINST THE MOTION

Councillor Webb

ABSTENTIONS

None