Agenda item

This item will conclude the scrutiny review on financing and resourcing the climate emergency plan.

The following are enclosed:

·  Notes of a meeting held  on 14 February 2023 with the London Bridge Business Improvement District (BID), plus and appendix setting out the BIDs routemap to zero carbon (online only),

·  Draft summary report.

The chair presented the draft report and invited the Commission to comment on the report and recommendations.  As a result the following was agreed:

RESOLVED

Recommendation 1

Add ‘explore’ in the preamble.

Recommendation 2

Remove reference to Abundance and add: ‘for the council to explore the most appropriate projects for a Municipal Climate Bonds, recognising that these will need to likely have visible community benefits.’

Recommendation 3

Amend to partner with 3ci, for example, or similar.

Recommendation 4

Add additional points to the Project Director’s role, recommending that they:

·  collaborate with the Greater London Authority, who is working to build a project pipeline at the city level, and that Southwark projects are prioritised in this pipeline, whilst also building a Southwark-level pipeline.

·  incorporate the use of measurement/ performance metrics

Recommendation 5 add other partners to complement the reference to London Bridge BID. 

Recommendation 6.

Verify if learning would be more appropriate than joining, in some cases 

(note seeScience Based Targets initiative (SBTi)  https://sciencebasedtargets.org/how-it-works )

Make more general and use the body of the report to reference specifics as well as a reference box linked to the recommendation including adding a reference to joining collaborations and initiatives that can maximise the impact Pension Funds can have on decarbonising the real economy, as well as their portfolios. Reference actions the Pension Fund could take include signing letters to companies/banks; co-filing shareholder resolutions; or other engagement activities that are within the capacity of the Pension Fund team.

Include references to:

·  the Climate Action 100+ initiative;

·  the CDP investor engagement initiative (https://www.cdp.net/en/investor/engage-with-companies) 

·  ShareAction's collaborative investor engagement initiatives on climate (e.g., on banks' fossil fuel financing; chemicals companies)

·  United Nation initiative 

·  UNISON and ShareAction's work on pension divestment

(This recommendation will be finalised in consultation with co-optees and Chair.)

Recommendation 7

Soften this to ‘consult Carbon Tracker’s work’.

(This recommendation will be finalised in consultation with co-optees and Chair)

Recommendation 8 Agree

Recommendation 9

Amend to: explore / invite

Recommendation 10

Add reference to  Just Transition 

Additional recommendations:

1. Develop a Green Finance Framework, which would serve as a voluntary governance standard, setting out how Southwark Council would manage its green financial instruments in the future, and outline how they would be classified as 'green'. These frameworks are essential as they assure investors that funds raised would only be used to help deliver eligible green projects from within the framework - a third-party would monitor the use of funds and provide third-party certification.

2. Southwark Pension Fund explores and reports back on the potential of incorporating Scope 3 emissions into its definition of carbon neutral, recognising that this is particularly crucial for sectors where the majority of emissions are Scope 3 (downstream) such as fossil fuel industries

3. Explore whether  carbon offset  policy on price per tonne is in the right place  in collaboration with other London boroughs

4. In consideration of the pivotal role that Green Finance will play towards achieving our aims within the Climate Emergency Action Plan, the  Leader of the Council should ensure that this area is given due prominence in allocations of Cabinet level capacity and responsibility.