Council taxpayers across York and North Yorkshire would lose out from any shortfall in pension revenues should a major public sector pension fund not invest in fossil fuels.

But the boss of the North Yorkshire County Council pension fund says the fund has been reducing its ‘exposure’ to fossil fuels and will continue to do so.

Some 97,000 public sector workers contribute towards the £5bn fund, which earlier this year reported a £1bn surplus and a reported £33m-£73m invested in fossil fuels.

This compares with £140m held in a Climate Opportunities Fund, which invests in green and renewable technologies.

This week, Fossil Free North North Yorkshire (FFNY) renewed its calls for fossil fuel  investment to stop and for the fund to reinvest in renewable energy projects.

Cllr John Weighell, chairman of the North Yorkshire Pension Fund board, told the Press: “We look at return on equities because our main aim is to provide pensions for employees of all the public sector.”

In recent years, the profits, share prices and dividends of oil companies like Shell and BP have taken off, with the BP share price increasing by half over the past year. However, this is in contrast to the falls prior to that.

Cllr Weighell continued: “There’s been a complete change around in equity markets, which is why we need to have a fully-balanced portfolio.”

The Bedale councillor, a former leader of the county council, said companies are different and Shell and BP “invest an enormous amount in renewables as well as their traditional work.”

He added the fund would continue to reduce its fossil fuel investments “but not at any cost.”

And with public sector pension payments being a defined benefit, it would not be the pensioners but the employer suffering from any shortfalls which would have to be made up.

“It would be the council taxpayers who would pay if there was a reduction in equity performance. It’s the council tax payers who would pay the difference, everybody, all of us,” he added.

However, the campaigners say the county council has a responsibility to invest wisely.

In an online petition demanding such divestment, Howard Green said: “Investing in outdated, polluting industries, such as fossil fuels (oil, coal and gas), that are threatening our way of life and our pensions cannot be considered wise.

“Global temperature targets agreed by world leaders can only be met if most of the existing fossil fuel reserves remain unburned and we quickly move to cleaner technology. This means that investments in fossil fuel companies will soon become ‘stranded assets’ putting our pensions at risk.”

Fossil Free Yorkshire is taking part in York Environment Week, which began on Saturday September 24 and runs until Sunday October 2.

The group will be in Parliament Street, York from 10.30am to 3.30pm on Tuesday  September 27.