Fully Decarbonise the Rainy Day Fund

As of 28 February 2021, the balance of the Strategic Reserve Fund, aka Rainy Day Fund, was ​£981,744,857. 

In 2019, a FOI showed the amount of direct holding of equities engaged in Oil, Gas and Consumable Fuels totalled £5.3m, which then represented 0.6% of the Fund’s portfolio.

Although at first glance this is a low figure, it was heavily caveated by the statement "Data is not held to the exposure to fossil fuels indirectly held through followed vehicles". 

In reality, this leaves greater room for an array of polluting investments. And, although ESG goals are stated in the Assembly Reports, the stringency of these is unqualified.

£981m is a significant investment, and it is currently unclear how this is being managed. Gathering the full data on this, and making it publically available, along with a conscious effort to divest from funds with exposure to polluters makes both ethical and financial good sense, stepping away from the risk of stranded assets. 

https://statesassembly.gov.je/assemblyreports/2021/r.7-2021.pdf

Why the contribution is important

Rigorous transparency on climate due dilegence is important to maintaining leadership and trust on climate issues, as well as enacting action.

A 2021 study of the global funds marketplace by thinktank Influence Map found that, even with supposed 'ESG' equity funds, managing assets of up to $265bn, 71% undertook little to no aligning of their portfolios with global climate goals.

These funds are therefore in effect rebranding by adding the words 'sustainable, 'ESG' or 'green' to their names without changing their portfolio holdings. 

https://influencemap.org/report/Climate-Funds-Are-They-Paris-Aligned-3eb83347267949847084306dae01c7b0

As such, clarity is needed on the Strategic Reserve Fund's approach, to ensure greenwashing is not engaged with on government money and investments are aligned with the best possible Paris Portfolio standards.

by cb on September 02, 2021 at 02:09PM

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