Scottish Public Pensions Agency (SPPA) investment in fossil fuel companies: FOI release

Information requested

I was wondering if the sppa invests in fossil fuel companies e.g. oil, coal etc? If so, have there been any discussions or plans to divest from such companies? In light of the climate emergency we are facing, which is also a health emergency, it would be counterintuitive for the NHS to be investing in such industries which pose a threat to public health.

Response

The Scottish Public Pensions Agency (SPPA) does not invest in fossil fuel companies. The pension schemes that SPPA administers on behalf of Scottish Ministers are unfunded (also known as a ‘payas-you-go’) defined benefit pension schemes, which means that no funds are built up using the contributions received and no investments made to cover future pension payments. The schemes' notional assets and liabilities are determined by regular quadrennial actuarial valuations which are used to set the scheme contribution rates. Contributions received by employers and active members are used to pay scheme pensions in payment, with any shortfall being met by the Scottish Government.

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