A public sector pension fund in West Wales is considering divesting from an investment in a renewable energy company and has been asked to explore the possibility of withdrawing from the investment. The committee overseeing the £3 billion-plus Dyfed Pension Fund, which includes contributors such as Carmarthenshire Council and other public sector organisations, is reviewing a request to release an earlier investment in Bute Energy, a company planning to develop wind farms in Mid Wales. The concern arises from subsequent proposals by a Bute Energy subsidiary, Green GEN Cymru, to connect the wind farms via pylons to a substation near Carmarthen, sparking opposition and calls for the cables to be buried underground.
Carmarthenshire Council, a vocal opponent of the pylon plans, has raised the withdrawal request through its cabinet member for resources, Cllr Alun Lenny, who also represents the Dyfed Pension Fund employers. Despite endorsing targets to become a “net-zero” greenhouse gas-emitting authority by 2030 and expressing concerns about climate change, the council remains conflicted about divesting from a renewable, zero-carbon investment.
During a recent Dyfed Pension Fund committee meeting, tensions arose as members debated the divestment request. Cllr Dai Thomas expressed concerns about withdrawing from the Bute Energy investment, citing public criticism for slow fossil fuel divestment. However, there were considerations about the legal implications and the fund’s objectives of obtaining value for money. Discussions revolved around the cost of divestment and possible alternatives such as pressing Bute Energy-Green GEN Cymru on evaluating cable-ploughing options.
The committee acknowledged the need for further examination of the divestment request and other related issues, suggesting a detailed response to be discussed in future meetings. The dilemma underscores the delicate balance between addressing climate change concerns and navigating investment decisions within the public sector pension fund. The evolving situation reflects the challenges faced by organisations seeking to align investment strategies with environmental priorities, amidst calls for sustainable and responsible investment practices.