Protesters demand industry-wide change that could impact pension funds: 'Managers have their heads in the sand'

March's PLSA Investment Conference in Edinburgh, Scotland, became the site of a protest by the Friends of the Earth Scotland, Divest Lothian, and Extinction Rebellion. 

As Deadline reported, the point of contention was the UK pension industry's investment in dirty fuels.

"The warning from the actuaries, the risk experts, couldn't be more stark," said a spokesperson for Extinction Rebellion Scotland. 

Increasingly destructive weather events and rising temperatures are connected to human behaviors, particularly the carbon dioxide and methane pollution produced when burning dirty fuel sources. These gases trap heat in the atmosphere, making thermometer readings creep up higher.  

Despite efforts to create a cleaner and cooler planet through the increased use of renewable energy, continued investment in dirty fuel companies is hindering progress. Pension funds are a particularly guilty party in this activity. 

"Pension fund managers have their heads in the sand when it comes to climate risk," said Joan Forehand from Divest Lothian, per Deadline. "They need to look at the evidence in front of them. … A robust approach to climate risk assessment would clearly show that investing in the fossil fuel industry is not in the interests of its members."

According to Deadline, pension funds have invested as much as £88 billion in the dirty fuel industry. Unfortunately, retirement savers have little say on where their pension money gets invested, which is why protests by environmental organizations are so important to discourage irresponsible practices. 

"Pension funds are in charge of our savings, they are responsible for our futures — but if they keep investing in fossil fuels, we won't have a liveable planet or positive future to retire into," said Sally Clark, divestment campaigner at Friends of the Earth Scotland.

"The money moved away from fossil fuels could instead be invested in ways that support local communities and protect the planet for everyone, like renewable energy, warm homes and social housing."

Among the many pros of clean energy are reduced air and water pollution, healthier environments, job creation, and cheaper energy bills because of technology like heat pumps and solar panels. 

Should the government ban gas stoves? Yes 💯 Only in new buildings 🏗️ Only in restaurants 🥘 No way 🙅 Click your choice to see results and speak your mind.

According to the International Energy Agency (IEA), solar and wind penetration should reach close to 70% in countries such as Chile, Germany, the Netherlands, and Portugal by 2030. 

That goes to show what's possible if we shift focus away from the polluting dirty energy companies and towards more sustainable technologies. Pension funds can benefit, too. 

According to As You Sow, companies listed in the Carbon Clean200 — deemed as leading the way in clean energy policies — earned over $2.24 trillion in 2022, with their total returns of 103.5% outperforming dirty energy companies by 39 percentage points. 

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.