The Parliamentary Contribution Pension Fund has been criticised for continuing to invest in fossil-fuel heavy companies despite a push into renewable energies.
The £733m scheme retains investments of £8m in Royal Dutch Schell and £4.4m in BP, according to its 2019 annual report even after 360 serving and former MPs have called for an end to fossil fuel investments.
Nevertheless, fossil fuel exposure has decreased due to the fund's use of low-carbon investment vehicles, with 5% of assets dedicated to renewable infrastructure, including wind and solar farms.
The Divest Parliament campaign, which has backing from all Labour leadership candidates, Liberal Democrats interim co-leaders, and senior Conservatives, welcomed the shift to renewables but called for a faster disinvestment of fossil fuel companies.
Campaigner Tytus Murphy said: "Strong global action and local acts of practical solidarity in response to coronavirus are helping to preserve our collective health and protect the most vulnerable in our society.
"We must apply a similar spirit of common purpose and global solidarity to tackle the climate crisis by investing in a clean energy future. It is encouraging that the trustees of the MPs Pension Fund are finally starting to move investments away from fossil fuels and towards renewables, and we will keep working with MPs from across the political spectrum to ensure the fund commits to completely eliminating its fossil fuel investments before COP26."
The international conference on climate change is currently due to take place in Glasgow in November, with significant discussions expected on aligning financial flows with climate targets.
The MPs pension fund has committed to developing a new climate change investment policy, but this has been delayed. It comes as pensions and financial inclusion minister Guy Opperman continues to press schemes to take action on climate change risk.
Green party MP and former leader Caroline Lucas said: "Investing in clean energy is clearly the right thing to do, financially and for the future of our planet, so I'm glad the Parliamentary Pension Fund is doing this. But it also has to stop investing in Shell and BP.
"Parliament declared a climate emergency nearly a year ago, and the pension fund needs to fall into line with this by ending the support for fossil fuels. These investments cannot be justified on ethical, environmental, or financial grounds, and they undermine MPs' credibility in addressing the climate emergency. They have to stop."
A PCPF spokesperson said: "In common with most large diversified investors, the PCPF currently has financial exposure to a very large number of companies and sectors. As set out in their annual review 2019, the trustees have made a number of changes to their investment strategy reflecting the fund's long term objectives and their beliefs. The trustees have committed to global renewable infrastructure in 2019 and in February 2020, they reviewed the fund's equity structure and have made these changes to increase focus on the long term sustainability of returns."
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