UNITED KINGDOM -- The trustees of the Parliament Pension Fund are reconsidering the rules of their investment funds. They are taking into account the risks that come with as the effects of climate change are making it more difficult for people to live by.
While the promise to put on hold all on their investment on fossil fuels may not be done in an instant, the trustees are making a mark as they take the first step towards making an assessment and reducing the impact of the pension fund's investment to fossil fuels. Ultimately, the pension fund, as well as its effects on the environment, are all paid for by the taxpayers.
The move proves to be victorious for a lot of advocates who have been campaigning for the change. They wish to put a stop on the funds that promote the use of fossil fuels. "Protecting the environment is now our greatest mission, so this change in tack of the pension fund is a very good welcome," said Caroline Lucas, the Green Party MP.
More than $700 million is invested in the use and promotion of fossil fuels across industries. This review of the pension fund investment pushes through, it will put more economic pressure on industries to take steps in reducing their greenhouse gas emissions.
"It has taken four long years to get us to where we are today. But now that the trustees are looking at divestment from a different light, there is hope that the investment they put on fossil fuels might prove to be risky, in more ways than one," said Caroline Lucas. "It is a risky investment not only for the savers but also for the planet as a whole. This review marks a significant change in the policy and it will allow them to think twice about not helping saving the planet."
Around the world, green campaign groups that push for the change has targeted a number of companies that put their investment on fossil fuels. So far, the changes they have incurred in the last five years have become notable. Last week alone, the Norway national oil fund began to consider investing in more renewable energy sources. Such changes in investment as well as in the rules governing the investments have given people hope that the Earth can be saved.
The trustees have already requested their advisers to prepare a "climate change policy." They have expressed their desire to make changes in the area of study. They can make it happen by conducting a thorough review of their business plan and give an update of the changes in the investment principles that they want to make.
The move to make these principal changes in how the UK Pension Fund is to be divested has long faced an opposition. However, the recent developments prove that change could happen, one small step at a time, no matter how long it takes.
