Massive pension fund could pull investments after oil exec's 'appalling' statements: 'I'm not convinced about continuing'

A South Yorkshire pension fund has decided to move toward divesting from fossil fuel companies BP and Shell, local paper The Star reported recently.

The South Yorkshire Pensions Authority, which manages funds on behalf of 1.1 million members and 3,100 employers, is responsible for a total of £64 billion in assets. While only approximately 3.3% of its investment has historically gone into the two oil giants, its divestment will mean taking millions out of the oil and gas economy.

For its board members, the move marks an important way to put their money, quite literally, where their politics are.

"I just thought statements by BP were absolutely appalling and I just wanted to distance myself from those statements," board member Andrew Sangar told The Star.

The statements Sangar's referring to were made earlier this year, when the gas giants recommitted to their oil and gas business at the expense of their renewable business segment, which had been growing prior to the change. Instead, they increased their dirty fuel investment to nearly $10.5 billion and slashed over $5.1 billion from renewables funding.

"I am not convinced about continuing engaging if that's what they're saying," Sangar said.

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The renewed commitment to polluting fossil fuels is worrying for scientists, environmentalists, and public health advocates alike. Planet temperatures have already soared to all-time highs, driven by human-generated emissions, and the ripple effects have permeated every aspect of society from decreased agricultural output to increased danger from air pollution.

As for the pension fund, the move marks a great investment opportunity. As the clean economy continues to grow with the development and innovation of more affordable energy sources, the financial and job opportunities are growing just as quickly. While it hasn't been a completely linear growth path — as is to be expected with any burgeoning sector — a study from the Imperial College London found that clean energy stocks are outperforming their fossil fuel counterparts over time.

With the South Yorkshire Pensions Authority determined to reach net zero in its holdings by 2030, divesting from BP and Shell is an important step.

"It would be very easy for all of us to grandstand and just say but we really want to effect change," Jayne Dunn, pension board member and mayor, said.