University students have experienced disruptions to their studies due to strike action on campuses. Academic staff have prioritized attending the picket line, with pensions being a major concern. Despite the pension scheme’s commitment to divest in coal and plans for a net-zero greenhouse gas emission investment portfolio by 2050, there is still dissatisfaction among staff.
Gemma Woodward, the head of responsible investment at Quilter Cheviot, believes that divestment should be utilized as a “threat” to fossil fuel companies. She argues that engagement with the energy sector is a more effective strategy to reduce emissions until the transition away from fossil fuels is complete. Divestment, on the other hand, can remain an option to pressure companies.
A report in the Harvard Business Review suggests that divestment may actually breathe new life into fossil fuel assets and fall short in practice. This further complicates the issue.
Representatives from law firm Leigh Day, who are acting on behalf of the academics, explain that their clients are seeking permission from the Court of Appeal to challenge recent cuts to the university sector pension scheme, as well as the scheme’s ongoing investment in fossil fuels. They argue that the lack of a proper divestment plan poses a significant financial risk to the pension and goes against the directors’ duties.
The Court of Appeal hearing is scheduled to begin on 13 June. A spokesperson for the USS (university sector pension scheme) dismisses the claims made by Prof Davies and Dr McGaughey, stating that they have no merit and that the scheme’s assets should not be used to fund their pursuit.
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