Boost for fossil fuel divestment as UK eases pension rules

Exclusive: pension schemes will be free to dump fossil fuel investments after government drops ‘best returns’ legal rules

The government is to allow Britain’s £2tn workplace pension schemes to dump their shares in oil, gas and coal companies more easily, empowering them to take investment decisions to fight climate change.

Until now, pension schemes have been hamstrung by “fiduciary duties” that effectively require schemes to seek the best returns irrespective of the threat of climate change. Many have rebuffed calls by members for fossil fuel divestment, citing legal obligations.

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