Motion A
The Council will debate the following Motion, submitted by Councillor Laura Mellstrom, in accordance with Rule of Procedure 16.
“In May 2019, this Council declared a climate emergency and pledged to become carbon neutral by 2030. Since then, a number of significant actions have been taken towards achieving that goal, in terms of this Council’s Scope 1 and 2 emissions. The climate impact of the investment of the Council’s employee pension monies has not yet been addressed.
The most effective way an individual can reduce their carbon footprint is to switch their pension fund out of fossil fuels. It is estimated that this one step can be 21 times more effective than the combined effect of giving up flying, going vegetarian and switching energy provider[1]. Pension divestment from fossil fuels is supported by UNISON which actively assists its members to campaign for divestment[2].
This Council’s employees are members of the Derbyshire Pension Fund which is administered by Derbyshire County Council. Derbyshire is one of 8 counties in the Central area Pool of the Local Government Pension Scheme, but Derbyshire Pension Fund retains control of its own investment strategy.
This is set out in two documents written in November 2020: The Investment Strategy Statement[3] and the Climate Strategy[4]. The Fund’s climate strategy is weak and unambitious:
· to achieve net zero in its portfolio by 2050,
· to “monitor” the relative weight of oil and gas with sustainable investments, and
· to “engage” with the fossil fuel companies it invests in.
The strategy of “engagement” is not only of doubtful effectiveness, but it ignores (a) the ethics and morality of continuing to fund climate-damaging businesses, and (b) the financial risks of investment in fossil fuels. By staying invested in fossil fuels, the Fund risks being left holding a portfolio of “stranded assets” after other major investors have pulled out of the sector. Sustainable investments regularly outperform fossil fuel investment products in the global markets.
This Council does not control the investment decisions of the Derbyshire Pension Fund, but it has a voice and should use it now to call on DCC to divest the Fund of fossil fuel investments.
The Fund’s Investment Strategy Statement and Climate Strategy were to be reviewed after no later than 3 years. That review is now overdue, so this is the ideal moment to send a clear message to DCC that its approach to the investment of pension money needs to change, that “engagement” is not strong enough, that 2050 is not soon enough.
Divestment motions have already been passed by Derby City Council, Chesterfield Borough Council, Amber Valley Borough Council, Bolsover District Council and High Peak Borough Council.
Proposed motion
1. This Council calls upon Derbyshire County Council’s Pensions and Investments Committee and the managers of the Derbyshire Pension Fund
a. With immediate effect, to freeze any further investment into publicly traded fossil fuel companies;
b. By 31 December 2025, to divest the Derbyshire Pension Fund of all investments in fossil fuel stocks, equities, and funds that include fossil fuel related assets or projects;
c. Urgently to review and update its Investment Strategy Statement and Climate Strategy to incorporate these objectives, and to adopt a method for quantifying and addressing climate change risks affecting other investments.
2. This Council instructs the Council’s Chief Executive to write to the Derbyshire County Council Pensions and Investments Committee with a copy of this Motion, asking them to take this action.”
Motion B
The Council will debate the following Motion, submitted by Councillor Peter O’Brien, in accordance with Rule of Procedure 16.
“A good public transport system is a vital component of the administration’s commitment to maintaining thriving and sustainable communities, and to enable our residents to live, work and study without dependence on the private car. It is also fundamental to the Council’s commitment to reducing carbon emissions, in the context of the acknowledged climate emergency, and practically, through integration with active transport modes such as walking and cycling.
However, in many parts of the Derbyshire Dales, the reliability of local bus services has deteriorated to the point where residents are unable to rely on them and passengers are left stranded, with little or no information offered by the bus operators. At the same time, most of our rural communities are seeing little or no meaningful investment from the £47 million funding awarded to Derbyshire County Council through the Bus Service Improvement Plan.
This Council therefore:
1. Recognises that a sustainable, effective and integrated public transport network must serve our local communities and confirms its responsibilities to advance that network through all means possible including the planning process, advocacy and support for innovative provision including active transport.
2. Seeks an urgent meeting with relevant Members of the County Council to address the issues of reliability of local bus services.
3. Seeks an urgent meeting with Members of the County Council and Bus Service Improvement Plan Partnership, to advocate a reassessment of current investment proposals (including Demand Responsive Transport, rail, bus, cycle and footpath integration, Real Time Information, transport hubs, roadside shelters and environmentally friendly buses) within the Derbyshire Dales, and where these cross the authority’s boundaries.
4. Establishes an all-Party Transport Group of Members through which issues relating to public transport can be raised, discussed and circulated.”
Minutes:
21:14: Councillor Nick Wilton left the meeting during consideration of the following motion due to declaring a pecuniary interest as an employee of National Rail.
The Council considered motion B as submitted by Councillor Andy Nash in accordance with rule of procedure 16, this is included below.
Motion B
Public Transport Motion
A good public transport system is a vital component of the administration’s commitment to maintaining thriving and sustainable communities, and to enable our residents to live, work and study without dependence on the private car. It is also fundamental to the Council’s commitment to reducing carbon emissions, in the context of the acknowledged climate emergency, and practically, through integration with active transport modes such as walking and cycling.
However, in many parts of the Derbyshire Dales, the reliability of local bus services has deteriorated to the point where residents are unable to rely on them and passengers are left stranded, with little or no information offered by the bus operators. At the same time, most of our rural communities are seeing little or no meaningful investment from the £47 million funding awarded to Derbyshire County Council through the Bus Service Improvement Plan.
It was moved by Councillor Andy Nash, seconded by Councillor Roger Shelley and
RESOLVED
That this Council:
1. Recognises that a sustainable, effective and integrated public transport network must serve our local communities and confirms its responsibilities to advance that network through all means possible including the planning process, advocacy and support for innovative provision including active transport.
2. Seeks an urgent meeting with relevant Members of the County Council to address the issues of reliability of local bus services.
3. Seeks an urgent meeting with Members of the County Council and Bus Service Improvement Plan Partnership, to advocate a reassessment of current investment proposals (including Demand Responsive Transport, rail, bus, cycle and footpath integration, Real Time Information, transport hubs, roadside shelters and environmentally friendly buses) within the Derbyshire Dales, and where these cross the authority’s boundaries.
4. Establishes an all-Party Transport Group of Members through which issues relating to public transport can be raised, discussed and circulated.
Voting
19 For
00 Against
01 Abstention
The Chair declared the motion CARRIED.
21:29: Councillors Martin Burfoot, Sue Burfoot, John Bointon, Susan Hobson, and David Chapman left the meeting during consideration of the following motion due to declaring pecuniary interests in the matter concerned.
The Council then considered Motion A as submitted by Councillor Laura Mellstrom in accordance with rule of procedure 16, this is included below.
Motion A
Pension Divestment Motion
In May 2019, this Council declared a climate emergency and pledged to become carbon neutral by 2030. Since then, a number of significant actions have been taken towards achieving that goal, in terms of this Council’s Scope 1 and 2 emissions. The climate impact of the investment of the Council’s employee pension monies has not yet been addressed.
The most effective way an individual can reduce their carbon footprint is to switch their pension fund out of fossil fuels. It is estimated that this one step can be 21 times more effective than the combined effect of giving up flying, going vegetarian and switching energy provider[1]. Pension divestment from fossil fuels is supported by UNISON which actively assists its members to campaign for divestment[2].
This Council’s employees are members of the Derbyshire Pension Fund which is administered by Derbyshire County Council. Derbyshire is one of 8 counties in the Central area Pool of the Local Government Pension Scheme, but Derbyshire Pension Fund retains control of its own investment strategy.
This is set out in two documents written in November 2020: The Investment Strategy Statement[3] and the Climate Strategy[4]. The Fund’s climate strategy is weak and unambitious:
· to achieve net zero in its portfolio by 2050,
· to “monitor” the relative weight of oil and gas with sustainable investments, and
· to “engage” with the fossil fuel companies it invests in.
The strategy of “engagement” is not only of doubtful effectiveness, but it ignores (a) the ethics and morality of continuing to fund climate-damaging businesses, and (b) the financial risks of investment in fossil fuels. By staying invested in fossil fuels, the Fund risks being left holding a portfolio of “stranded assets” after other major investors have pulled out of the sector. Sustainable investments regularly outperform fossil fuel investment products in the global markets.
This Council does not control the investment decisions of the Derbyshire Pension Fund, but it has a voice and should use it now to call on DCC to divest the Fund of fossil fuel investments.
The Fund’s Investment Strategy Statement and Climate Strategy were to be reviewed after no later than 3 years. That review is now overdue, so this is the ideal moment to send a clear message to DCC that its approach to the investment of pension money needs to change, that “engagement” is not strong enough, that 2050 is not soon enough.
Divestment motions have already been passed by Derby City Council, Chesterfield Borough Council, Amber Valley Borough Council, Bolsover District Council and High Peak Borough Council.
It was moved by Councillor Laura Mellstrom, seconded by Councillor Peter Slack and
RESOLVED
1. That this Council calls upon Derbyshire County Council’s Pensions and Investments Committee and the managers of the Derbyshire Pension Fund
a. With immediate effect, to freeze any further investment into publicly traded fossil fuel companies;
b. By 31 December 2025, to divest the Derbyshire Pension Fund of all investments in fossil fuel stocks, equities, and funds that include fossil fuel related assets or projects;
c. Urgently to review and update its Investment Strategy Statement and Climate Strategy to incorporate these objectives, and to adopt a method for quantifying and addressing climate change risks affecting other investments.
2. That this Council instructs the Council’s Chief Executive to write to the Derbyshire County Council Pensions and Investments Committee with a copy of this Motion, asking them to take this action.
3. That this Council formally responds to the consultation launched by the Derbyshire Pension Fund on 13 December 2023, closing on 31 January 2024, and that this response will support the divestment objectives set out in the motion; the response is to be formulated in consultation with Councillor Laura Mellstrom and Councillor Peter Slack.
4. That this Council will publicise the Derbyshire Pension Fund’s consultation process and encourage participation by individual Council Members, employees, residents and local businesses.
Voting
12 For
01 Against
02 Abstentions
The Chair declared the motion CARRIED.