GLASGOW’S city leader would like to see the Strathclyde Pension Fund adopt “ambitious policies” when it comes to fighting the climate emergency.

It comes after the Strathclyde Pension Fund (SPF) agreed to do an assessment of energy sector companies in the pension portfolio to ensure they are meeting the minimum standards agreed in consultation with council expert managers and Sustainalytics.

Sustainalytics is a company who rates the sustainability of listed companies based on their environmental, social and corporate government’s performance.

During the most recent full council meeting councillor Jon Molyneux of the Green groups asked the Leader of the Council what she believes to be an acceptable minimum standard to be applied when considering whether or not to divest from holdings in fossil fuel companies.

He also asked whether she agreed that such a standard must be based on climate science, not industry greenwash.

Council Leader Susan Aitken said: “Members of the Strathclyde Pension Fund were not able to take part in debates and discussions in this chamber.

“They provide information investors and companies to allow them to make informed decisions leading to a more just and sustainable economy.

“This follows work being undertaken by other pension funds including the New York pension fund to look more widely at their portfolios. There isn’t a recognised metric for pension funds with the rules they must follow around return on investment which ranks organisations by their sustainability credentials. I think many would agree that climate science should inform this work.

“The SPF is seen as a global leader in the conversation about pension funds investment can be made greener and more sustainable. I am certainly hopeful that the work they are undertaking will be able to be referred to and used by others in the coming years.”

Councillor Molyneux then pointed out that the carbon budget requirements mean that globally only 1/5 of fossil fuel reserves can afford to be burnt.

He said: “We do believe there is credible leadership for COP26.

“Does the leader agree that a non negotiable baseline for any minimum standard must mean the exclusion of any company anywhere on the planet which is still seeking new licenses for exploration and extraction.”

The council leader confirmed that she would like to see that be the aspiration that the SPF works towards.

She said: “I can have an opinion and view on the matter the same as him but this is a matter for the SPF and given that they are discussing this again very soon it would be wrong of me to pre-empt their discussions.

“I would like to see the SPF adopt the most ambitious policies they are able to do in relation to supporting the fight against the climate emergency.”