Universities Superannuation Scheme (USS), Britain’s largest private pension scheme, asked a London court to block a lawsuit which challenged its alleged failure to devise a credible plan to divest from fossil fuels.
The £82bn fund is facing legal action from two of its members over continuing investments in coal, natural gas and petroleum, according to Reuters.
London’s High Court blocked the lawsuit last year, but the two members behind the claim asked the Court of Appeal to revive the case, which could open other pension funds to similar legal action.
They want to bring in a derivative case against USS’ directors on behalf of the fund, telling the Court of Appeal that fossil fuel investments pose a “significant and increasing” financial risk to USS that 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, cited in Reuters.
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.
According to its website, Shell is USS's 38th largest investment and BP its 63rd, with its top 10 investments:
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