Derbyshire pension investment response

Derbyshire’s Reform UK leadership has confirmed it will continue investing hundreds of millions of pounds in climate change action, net-zero, solar and wind “to put taxpayers first”.

Following an article from the Local Democracy Reporting Service last week, to which Reform provided no response, Derbyshire County Council has now issued a statement regarding the authority’s stance on its existing £7.7 billion pension fund investments.

It says it would be “inappropriate” for decisions affecting the fund to be made based on “political or ideological” objectives.

Reform also says its retention of these climate-change, net-zero, solar, and wind investments will continue because “taxpayers must always come first”.

The article discussed the more than £1.9 billion that the Reform-controlled authority directs toward solar, wind, net zero, and climate action, despite opposition and disbelief in man-made causes.

Last October, the council passed a motion opposing large-scale solar farms and battery storage developments on greenfield and agricultural sites.

Nationally, Reform UK opposes new onshore wind and large-scale solar projects across England and Wales and has said it would use local council powers to block new schemes.

It has pledged to scrap wind and solar subsidies in its first 100 days in office, should it become the next Government, with the industry saying this would undermine the national interest and cause economic chaos.

The party has called for drilling in the North Sea, while industry officials say it would not be financially viable.

These aims, it says, are to put taxpayers first and to save households £250 a year on their energy bills.

The national party’s energy policy says: “British households and businesses are being crushed by among the highest energy costs in the world – driven by bad ideological policy.”

Councillor Matthew Benfield, Reform UK’s chair of the pensions and investments committee, said: “Derbyshire Pension Fund exists to safeguard the pensions of our members and deliver the best possible long-term returns at an appropriate level of risk.

“As members of the pensions and investments committee, we have a clear legal and fiduciary duty to act in the interests of pension fund members and participating employers, and it would be inappropriate for that committee to make decisions in pursuit of political or ideological objectives.

“The interests of scheme members, employers and ultimately local taxpayers must always come first.

“Many of the investments currently held within the fund were made over a number of years and under previous administrations and committee memberships.

“Pension funds are long-term investors, and it would not be prudent for investments to be bought or sold simply because of a change in political control of the council.

“Performance against agreed benchmarks is monitored closely and any decision to dispose of investments must be based on financial merit and the interests of pension fund members.

“It is also important to recognise that under recent Local Government Pension Scheme reforms many underlying investment decisions are now the responsibility of the pension fund’s pooling company.

“The committee’s role is to set and oversee the implementation of investment strategy, ensure appropriate governance is in place, and scrutinise performance against agreed objectives and industry benchmarks.

“The committee will continue to focus on its responsibility for ensuring that the pension fund is managed prudently, professionally and in accordance with our legal duties, supporting investment decisions that are in the best interests of pension fund members, employers and taxpayers, and which deliver strong long-term outcomes for the fund.”

In late August Councillor Alan Graves, Reform UK leader of Derbyshire County Council (DCC) said he did not believe that climate change was man-made.

Earlier in the same month, the council eradicated climate change, fossil fuels and net zero from all of its legally mandated environmental policies.

In January, the council scrapped a net-zero commitment with the quarrying industry; last May, Cllr Graves said net zero was “the opposite of a priority for us” and in September dubbed it “stupid”.

Last October, the council passed a motion opposing large-scale solar farms and battery storage developments on greenfield and agricultural sites.

In May last year, shortly after taking control of the authority, the Reform administration scrapped the council’s committee on climate change, biodiversity and carbon reduction.

Council reports show the Derbyshire Pension Fund invests in the following:

• £2.8 million is invested in Foresight Solar Fund
• £5.3 million is invested in Bluefield Solar Income Fund
• £6.4 million is invested in the Renewables Infrastructure Group
• £15.4 million is invested in Greencoat UK Wind
• £31.8 million is invested in BlackRock Global Renewable Power Funds
• £55.6 million is invested in Macquarie GIG Renewable Energy Fund
• £58.9 million is invested in Schroders Greencoat UK Fund (for renewable energy)
• £634.4 million is invested in LGPS Central All World Equity Climate Multi Factor Fund
• £1.12 billion is invested in LGIM MCSI World Low Carbon Target Index Fund