An independent investigation compiled by national newpaper, ‘The Independent’, has found that the Environmnetal Agency (EA), who are held responsible for regulating unconventional shale gas extraction across the United Kingdom of Great Britainaa nd Northern Ireland, have in fact invested their pension funds in the very energy extraction process that they are held responsible for regulating.
What has resulted from the investigation, is an accusation by the Independant of a conflict of interest between the Environmental Agency’s duties as environmental regulators, and the investments of their pensions in the industry it is charged with regulating.
The Independant report:
In the UK the EA’s pension fund – worth a huge £2.3bn – invests in companies investing in fracking, incineration and nuclear power, all of which the Agency is involved in regulating…….The pension details are contained in a response to a Freedom of Information request from the EA, which lists the companies it had a stake in as of March this year, its latest available audited information. And its investments are in marked contrast to the Agency’s public image of being a leading “responsible” investor that integrates “environmental, social and governance considerations into all decision-making.” The Agency champions its commitment that by 2015 “25 per cent of the fund will be invested in the sustainable and green economy”.
The Independent further state:
It is with issues such as fracking, incineration and nuclear that the EA is probably at its most vulnerable. Its investments could potentially open it up to legal challenges if the it were to grant permits to companies in which its pension pot has a financial interest.
The fund is investing in two companies financially intertwined with fracking giant Cuadrilla, the company that has been the subject of fierce protests in Lancashire and West Sussex. The first is Centrica, which is investing £60m in Cuadrilla’s Lancashire operations and the second is Riverstone Energy, which owns 44 per cent of Cuadrilla.
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