Church of England pension fund turns its back on oil and gas

On the grounds of not showing “sufficient ambition to decarbonise in line with the aims of the Paris Agreement”, the Church of England pensions board announced its intention to divest from all remaining oil and gas holdings across its portfolio. 

In a statement, the church said: ‘The Church of England pensions board is today announcing its intention to disinvest from Shell plc and other oil and gas companies which are failing to show sufficient ambition to decarbonise in line with the aims of the Paris Agreement.’

The board’s release specified reversals of previous commitments from BP and Shell, who each slowed rates of renewables investment. 

John Ball, chief executive officer of the Church of England pensions board, said, “There is a significant misalignment between the long-term interests of our pension fund and continued investment in companies seeking short-term profit maximisation at the expense of the ambition needed to achieve the goals of the Paris Agreement. Recent reversals of previous commitments, most notably by BP and Shell, have undermined confidence in the sector’s ability to transition”.

While the board looks after a relatively small £3.2bn in assets, its involvement in coalitions and history of active engagement makes it an influential investor.

Now that the CoE has decided to take its investments out of oil and gas, will other influential pension funds follow?