Issue - meetings

To consider and debate the following motion, submitted by Cllr Michael Jones, which was considered by the Governance Committee following referral at the meeting of the County Council on 6 November 2020.

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to take all necessary steps to divest all of its investments from fossil fuel companies as soon as practicable.’

and the report of the Governance Committee.

101.1  At the County Council meeting on 6 November 2020 the following motion had been moved by Cllr Michael Jones, seconded by Cllr Oxlade, and referred to the Governance Committee for consideration. A report by the Committee was included with the agenda (pages 133 to 136).

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to take all necessary steps to divest all of its investments from fossil fuel companies as soon as practicable.’

101.2  An amendment was moved by Cllr Lanzer and seconded by Cllr Wickremaratchi as set out below:

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to focus on sustainable investment for growth through the application of its environmental, social and governance principles  take all necessary steps to divest all of its investments from fossil fuel companies as soon as practicable.’

101.3  The amendment was put to a recorded vote under Standing Order 3.35.

(a)        For the amendment – 37

Cllr Acraman, Cllr Arculus, Cllr Atkins, Cllr Barling, Cllr Barnard, Cllr Barrett-Miles, Cllr Bennett, Cllr Boram, Cllr Bradbury, Cllr Burgess, Cllr Burrett, Cllr Catchpole, Cllr Cloake, Cllr Crow, Cllr Duncton, Cllr Edwards, Cllr Hall, Cllr High, Cllr Hillier, Cllr A Jupp, Cllr Kennard, Cllr Kitchen, Cllr Lanzer, Cllr Magill, Cllr Markwell, Cllr Marshall, Cllr McDonald, Cllr Mitchell, Cllr Montyn, Cllr S Oakley, Cllr Purnell, Cllr Russell, Cllr Sparkes, Cllr Turner, Cllr Waight, Cllr Whittington and Cllr Wickremaratchi.

(b)         Against the amendment – 14

Cllr Brunsdon, Cllr N Dennis, Cllr Fitzjohn, Cllr M Jones, Cllr Lea, Cllr Lord, Cllr Millson, Cllr O’Kelly, Cllr Oxlade, Cllr Purchese, Cllr Quinn, Cllr Smytherman, Cllr Sudan and Cllr Walsh.

(c)         Abstentions – 10

Cllr Baldwin, Cllr Bradford, Cllr J Dennis, Cllr Elkins, Cllr Hunt, Cllr A Jones, Cllr N Jupp, Cllr Patel, Cllr Pendleton and Cllr Urquhart.

101.4  The amendment was carried.

101.5  The amended motion, as set out below, was agreed.

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to focus on sustainable investment for growth through the application of its environmental, social and governance principles.’

Report by the Director of Law and Assurance.

Cllr Michael Jones submitted a motion to the Council on 6 November 2020, calling on the Pensions Committee to divest its investments of fossil fuel companies. The motion was referred to the Pensions Committee for consideration but, following a review, the motion is now before the Governance Committee which has responsibility for the Council’s employer responsibilities. The Committee is asked to agree a response to the motion to be submitted to the next meeting of the Council.

46.1     The Committee considered a report by the Director of Law and Assurance which set out a motion submitted to Council on 6 November 2020 by Cllr M Jones (copy appended to the signed minutes).

46.2     The Director of Law and Assurance advised that the motion had been referred to the Governance Committee in light of the Pensions Committee’s role as administering authority for the West Sussex Local Government Pension Scheme on behalf of around 200 employers. It was more appropriate for the Governance Committee to comment as the Committee responsible for pensions matters as a pension scheme employer.

46.3     Cllr M Jones called on the Committee to urge Council to support the motion as a clear sign of the Council’s commitment to tackling the climate emergency.

46.4     The Committee discussed the motion. Some members felt that the Council should leave the Pensions Committee to make its own investment decisions as administering authority, albeit commenting that it is possible for the Council as with any other employer in the scheme to ask the Pensions Committee to consider such principles while undertaking its fiduciary duty for ensuring overall sustainability of the pension scheme.

46.5     Cllr Lanzer made a proposition, seconded by Cllr Marshall that the Governance Committee recommend to the Council that it ‘requests that the Pensions Committee maintains the application of environmental, social and governance principles throughout its process while seeking to maintain sustainable investment principles.’ A vote was taken and the proposition was agreed.

46.6     Cllr Walsh made a proposition, seconded by Cllr Jones that the Governance Committee recommend to the Council that it ‘requests that the Pensions Committee consults all employers in the West Sussex Local Government Pension Scheme on whether the Scheme should divest in fossil fuel companies.’ A vote was held and the proposition was lost.

46.7     Resolved – That the Committee recommends to the Council that the Pensions Committee be asked to maintain the application of environmental, social and governance principles throughout its process while seeking to maintain sustainable investment principles.

To consider the following motion, notice of which was given on 13 October 2020 by Cllr Michael Jones. Note: The Chairman has indicated she intends to refer the motion to the Pensions Committee for consideration. It will therefore not be debated at this meeting.

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to take all necessary steps to divest all of its investments from fossil fuel companies as soon as practicable.’

43.1     The following motion was moved by Cllr M Jones and seconded by Cllr Oxlade:

‘In line with the principles previously supported by this Council in taking strong local action to address the climate emergency and recognising the strength of public opinion, as evidenced by the large demonstration at the full County Council meeting in February 2020, this Council calls on the West Sussex Pensions Committee to take all necessary steps to divest all of its investments from fossil fuel companies as soon as practicable.’

43.2     The motion was referred to the Pensions Committee for consideration.