LONDON, June 13 (Reuters) – Britain’s biggest private pension scheme on Tuesday asked a London court to block a landmark lawsuit over its alleged failure to devise a credible plan to divest from fossil fuels.
The 82 billion-pound ($103 billion) Universities Superannuation Scheme (USS) is facing legal action from two of its members over its continuing investments in coal, natural gas and petroleum.
The lawsuit was blocked last year by London’s High Court, but the two academics behind the claim asked the Court of Appeal to revive it on Tuesday in a case that could open other pension funds to similar legal action.
They want to bring a so-called derivative case on behalf of USS against its directors, a process which has also been deployed by environmental law charity ClientEarth against Shell (SHEL.L).
Their lawyers told the Court of Appeal that fossil fuels investments pose a “significant and increasing” financial risk to USS that its directors were not addressing.
“By a combination of international law, political pressure and market forces, the fossil fuel investment market will decrease with time,” their lawyer David Grant said in court filings.
However, lawyers representing USS argued the case should be dismissed as the scheme’s investments in fossil fuels have not caused any loss to USS or the two academics, which is necessary for a derivative lawsuit to proceed.
USS announced in 2021 that it aims to become net zero by 2050. In March, it pledged to “vote more personally against responsible directors where possible”, and says it has invested around 1.9 billion pounds in renewable energy.
Its directors voted against Shell Chairman Andrew Mackenzie’s reappointment at the energy giant’s annual general meeting last month, which was disrupted by climate activists.
Reporting by Sam Tobin; Editing by Conor Humphries
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