Divest and Reinvest: Sources

On this page you can find a more detail about councils’ investments, a full list of the data sources we used, and an explanation of our methodology.

1. Fossil fuel data sources and methodology

We compiled the data on local government pension funds’ investments in fossil fuels using responses to Freedom of Information requests (listed in Freedom of Information requests by fund) and the annual reviews of the 11 funds.

10 of the pension funds have direct holdings in fossil fuel companies. These were determined by cross referencing companies listed with the independently collated Carbon Underground list of the 100 largest coal companies, and 100 largest oil and gas companies, by the amount of fossil fuels extracted (http://fossilfreeindexes.com/research/the-carbon-underground/). This list is not comprehensive as it excludes smaller companies, but is widely used and easily available, and so allows comparison between other funds.

All 11 pension funds also had money invested in index funds and bond funds. Given the high likelihood that a portion of these funds were subsequently invested in fossil fuel companies we compiled a list of index and bond funds from the data from councils. We then downloaded data about how much each fund had invested in fossil fuels from the website Fossil Free Funds and applied the relevant figure (https://fossilfreefunds.org/). We then took an average of the exposure of these funds in fossil fuels and applied this number to index and bond funds not listed on Fossil Free Funds. For the purposes of this report we have not applied any fossil fuel exposure to gilts, currency, commodities, derivatives, partnerships, venture capital, hedge funds, real estate/property, or other ‘alternative’ funds.

It should be noted that our methodology is slightly improved from that used in the 2015 report “Local Government Pensions, Fossil Fuels, and the Transition to a New Economy” and as such data from the two reports is not exactly comparable.

2. Direct fossil fuel investments by company

All values ‘000 GBP

Company name Amount Scottish councils have invested Company description Local government pension fund investors
Royal Dutch Shell 129,936 Oil and gas company Lothian, Highland, Fife, Strathclyde, Tayside, Falkirk, Orkney, North East, Dumfries & Galloway, Scottish Borders
Rio Tinto 74,107 Coal company Strathclyde, Orkney, Scottish Borders, Fife, Highland, Tayside, Lothian, North East
BP 63,977 Oil and gas company North East, Strathclyde, Falkirk, Tayside, Lothian, Highland, Dumfries & Galloway
Exxon Mobil 44,008 Oil and gas company Strathclyde, Highland, Lothian, Fife
EOG 40,661 Oil and gas company Scottish Borders, Orkney, North East, Strathclyde, Falkirk, Tayside, Highland, Fife, Lothian
Eni 31,474 Oil and gas company Strathclyde, Lothian
Centrica 27,964 Oil and gas company Fife, Lothian, Falkirk
Total 25,783 Oil and gas company North East, Lothian, Tayside, Highland, Strathclyde
Apache 20,047 Oil and gas company Scottish Borders, Strathclyde, Tayside, Highland, Lothian, Fife, Orkney
BHP Billiton 19,467 Oil, gas, and coal company Orkney, Scottish Borders, Fife, North East, Falkirk, Tayside, Highland, Falkirk
Chevron 16,614 Oil and gas company Strathclyde, Lothian
Lukoil 15,705 Oil and gas company Strathclyde
Occidental 12,586 Oil and gas company Fife, Strathclyde
Statoil 10,751 Oil and gas company Lothian
Anadarko 9,277 Oil and gas company Scottish Borders, Strathclyde, Fife
Pioneer Natural Resources 8,173 Oil and gas company Strathclyde, Fife
Hess 7,985 Oil and gas company Strathclyde, Tayside, Lothian
Anglo American 7,916 Coal company Falkirk
Noble Energy 7,807 Oil and gas company Strathclyde, Fife
Suncor Energy 7,099 Oil and gas company Strathclyde, Falkirk
ConocoPhilips 6,319 Oil and gas company Strathclyde, Lothian
South32 5,794 Coal company Falkirk
Concho Resources 5,021 Oil and gas company Strathclyde, Fife
Cabot Oil & Gas 4,189 Oil and gas company Strathclyde, Fife
Imperial Oil 3,590 Oil and gas company Strathclyde, Highland
JX Holdings 2,700 Oil and gas company Tayside
Glencore 2,611 Coal company Scottish Borders
BASF 2,519 Oil and gas company Lothian
Canadian Natural Resources 2,455 Oil and gas company Strathclyde
Woodside Petroleum 2,398 Oil and gas company Highland
Vale 2,241 Coal company North East
CNOOC 2,222 Oil and gas company Highland
Inpex 1,477 Oil and gas company Orkney, Scottish Borders, Tayside, Highland, Lothian
Oil Search 1,393 Oil and gas company Strathclyde
Devon Energy 1,232 Oil and gas company Strathclyde
OMV 1,224 Oil and gas company Lothian
First Energy 1,154 Coal company Strathclyde
EQT Corporation 852 Oil and gas company Strathclyde
Cenovus Energy 851 Oil and gas company Strathclyde
Freeport-McMoran 809 Oil and gas company Strathclyde
Cimarex Energy 768 Oil and gas company Strathclyde
Crescent Point Energy 717 Oil and gas company Strathclyde
Marathon Oil 568 Oil and gas company Strathclyde
Encana 407 Oil and gas company Strathclyde
Range Resources 405 Oil and gas company Strathclyde
Arc Resources 382 Oil and gas company Strathclyde
Murphy Oil 341 Oil and gas company Strathclyde
Newfield Exploration 313 Oil and gas company Strathclyde
Tourmailine Oil 281 Oil and gas company Strathclyde
Husky Energy 263 Oil and gas company Strathclyde
Continental Resources 230 Oil and gas company Strathclyde
Antero Resources 42 Oil and gas company Strathclyde

 

3. Reinvestment examples with sources

Name of investor Invested
(£ millions)
Investment vehicle Nature of investment Sources
Falkirk Pension Fund 30 Hearthstone Investments Social and private housing in the central belt Scottish Parliament*
Strathclyde Pension Fund 35 Direct Commonwealth Legacy housing scheme Scottish Parliament*
Strathclyde Pension Fund 10 Albion Community Power UK Hydroelectric, wind, solar power and biomass Investment: Scottish Parliament*

Scheme: http://www.albioncommunitypower.co.uk/energy-production

Falkirk Pension Fund 10 Green Highland Renewables via Ancala Renewables equity Hydroelectric and wind power in Scotland Investment: FOI listed in Appendices

Scheme: http://www.greenhighland.co.uk/

Lothian Pension Fund 37 Green Highland Renewables via Ancala Renewables equity Hydroelectric and wind power in Scotland Investment: FOI listed in Appendices

Scheme: http://www.greenhighland.co.uk/

Strathclyde Pension Fund 10 Resonance British Wind Energy UK wind farms Investment: FOI listed in Appendices

Scheme: http://www.resonanceassetmanagement.com/news

Strathclyde Pension Fund 30 Temporis Onshore Wind Small scale UK wind power, solar and biomass Investment: FOI listed in Appendices

Scheme: http://temporiswind.com/

Strathclyde Pension Fund 50 UK Green Investment Bank Offshore Wind Fund Offshore wind farms in the UK Investment: Scottish Parliament*

Scheme: http://www.ntrplc.com/news/article/ntr-acquires-third-wind-farm-from-res

Lothian and Falkirk Pension Funds 10 FIM Wind Energy Wind farm at Harburnhead, West Lothian http://www.lpf.org.uk/news/article/25/harburnhead_infrastructure_investment_update
Lothian Pension Fund 12 Hg Capital Renewable Power District heating, wind, solar across Europe Investment: FOI listed in Appendices

Scheme: http://www.hgcapital.com/renewable-energy/current-investments

Total 234 Falkirk total:

£45 million

Lothian total:

£54 million

Strathclyde total:

£135 million

*Scottish Parliament Local Government and Regeneration Committee “Report on Pension Fund Investment in Infrastructure and City Deal Spend”, 2015. Source: http://www.parliament.scot/parliamentarybusiness/CurrentCommittees/94373.aspx

4. Freedom of Information requests by fund

You can view the freedom of information requests we sent and the responses given by councils online via the website What Do They Know:

Aberdeen (North East Pension Fund)

Investments (initial): https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_3#incoming-906904

Investments (follow-up): https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_12#incoming-920314

Policy (initial): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_4#incoming-838594

Policy (follow-up): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_14#incoming-896874

Dumfries and Galloway

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_6#incoming-905986

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_11#incoming-841331

Dundee (Tayside Pension Fund)

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_4#incoming-904563

Policy (initial): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_5#incoming-843859

Policy (follow-up): https://www.whatdotheyknow.com/request/tayside_pension_fund_esg_practic#incoming-853057

Edinburgh (Lothian Pension Fund)

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_2#incoming-906016

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_9#incoming-842074

Falkirk

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_7#incoming-904608

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_7#incoming-841552

Fife

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_8#incoming-906292

Policy (initial): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_6#incoming-867823

Policy (follow-up): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_12#incoming-899266

Glasgow (Strathclyde Pension Fund)

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv#incoming-907322

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_8#incoming-855528

Highland

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_9#incoming-913156

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe#incoming-841133

Orkney

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_10#incoming-897515

Policy (initial): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_3#incoming-838651

Policy (follow-up): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_13#incoming-897514

Scottish Borders

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_5#incoming-900289

Policy (initial): https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_10#incoming-835664

Policy (follow-up): https://www.whatdotheyknow.com/request/consultation_with_local_governme#incoming-842404

Shetland

Investments: https://www.whatdotheyknow.com/request/local_authority_pension_fund_inv_11#incoming-907022

Policy: https://www.whatdotheyknow.com/request/the_scottish_local_government_pe_2#incoming-838656

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