Shell’s largest UK pension fund is under pressure from a member who says it is failing to disclose how it deals with climate risk, in what is regarded as a test case for other UK pension funds.
The £16bn Shell Contributory Pension Fund was contacted last week by Christoph Harwood and ClientEarth, the legal environmental campaign group. They requested proof of how it is dealing with the issue of climate change given the material financial risk to investments. They warned the SCPF by letter that they would take the complaint to the Pensions Ombudsman, which has legal powers to settle disputes and complaints, if they did not receive a satisfactory response within three weeks.
“This new UK case is a timely wake-up call for the pensions sector,” said Catherine Howarth, chief executive of ShareAction, the responsible investment organisation.