Q&As

Can a scheme member request that the trustees divest from fossil fuel investments?

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Published on LexisPSL on 21/08/2020

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Can a scheme member request that the trustees divest from fossil fuel investments?

Can a scheme member request that the trustees divest from fossil fuel investments?

Since 1 October 2019, trustees of occupational pension schemes are required to state in their statement of investment principles their policy on the extent (if at all) to which they take account of members’ views, including (but not limited to) their ethical views and their views in relation to social and environmental impact and present and future quality of life (see Occupational Pension Schemes (Investment) Regulations 2005 (OPS(I)R 2005), SI 2005/3378, reg 2(3)(b)(vii)).

Significantly, members’ views count as ‘non-financial matters’ and trustees do not have to take account of such matters. In fact, it may not be appropriate for trustees to take account of non-financial matters. In broad terms, this may only be appropriate if: (i) the trustees have good reason to think that

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