13 July 2007
Public sector pension funds are using their hefty financial clout to lobby for changes to the government's draft Climate Change Bill, claiming that ministers are not doing enough to cut CO2 emissions.
The Local Authority Pension Fund Forum, which represents 40 public sector retirement funds worth a combined £75bn, wants a tougher target for reducing national CO2 emissions by 2050.
Instead of 60%, the LAPFF wants an 80% target, which it claims is in line with recent studies on the damaging nature of carbon emissions, such as the Stern Review. The forum also notes that MPs on the select committee for environmental audit have called on the government to go further.
'Although the forum is fully supportive of the establishment of long-term targets, we consider that the 60% target for emissions reduction by 2050 does not reflect the current consensus,' a briefing note states.
The LAPFF is also pushing the companies they invest in to adopt strict environmental commitments.
Darrell Pulk, LAPFF chair, said: 'The time for discussion about the effects of climate change has passed. Companies should now have in place risk management procedures as part of their business strategies.
'They will further need to demonstrate to their shareholders that the business is well placed to produce cuts that will be required as a result of climate change legislation.'
The forum's firm stance reflects public sector organisations' growing involvement in the UK's sustainability debate.
Under plans outlined in the government's recent energy white paper, hundreds of public bodies will shortly become subject to a carbon emissions trading scheme designed to limit the sector's contribution to global warming by reducing electricity use, for example.
Public Finance will host a round table discussion on sustainability on Friday, July 13. Coverage of the event will be included in the issue of July 20.
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