Waltham Forest Council has defended itself, claiming it has made progress in its move away from investment in fossil fuels.

The authority came under fire last month for still investing nearly £30 million from its pension pot into oil and gas companies, including Shell and BP, despite having declared a climate emergency in April this year.

More than 300 people, including activists from climate campaign group Extinction Rebellion, protested outside Waltham Forest town hall earlier this year to demand change.

Audit figures show the council reduced its investments in fossil fuels by 44 per cent over the last three years and the authority said the full divestment of its pension funds from fossil fuels will take place over a five-year-period.

On March 31, 2017, the council’s pension fund held £53.4 million worth of investments in oil, gas, and coal stocks.

On December 31, 2018, that figure had reduced to £30 million.

In percentage terms oil, gas, and coal stocks account for 3.4 per cent of the pension fund’s total value, down from 6.6 per cent in 2017.

But it is this £30 million figure that protesters complained about earlier this year and campaigners claimed the council is still not doing enough.

The council said it has a responsibility to carefully manage its pension fund so that it provides enough return to support retirees who depend on it.

The council has appointed three new managers to oversee its global investments. One of these new managers is specifically tasked to identify investments with minimal carbon footprints.

As a result, money began to transfer to new funds through 2018 and 2019.

Across the UK, councils invest through pooled funds to reduce their exposure to financial risk. Pensions for all 32 London boroughs are managed through the London Collective Investment Vehicle (CIV).

The council said, despite the significant cost benefits, using the CIV does present challenges to its goal of divestment from fossil fuels, as these priorities may not align with those of the wider pool.

Cllr Johar Khan, pension fund committee chairman, said: “We call on the Government to give us more freedom to directly appoint fund managers who have more scope to identify and pursue investment opportunities.

“We also want to work with the CIV to help them identify and provide suitable investment opportunities – not just for our funds, but for all the local authority pension funds they manage.”

Cllr Clyde Loakes, deputy leader and cabinet member for the environment, said: “I am proud of the work done to reduce the council’s pensions fund investment in fossil fuels – but we cannot rest on our laurels.

“There is still much more that must be done to tackle the climate emergency and safeguard the environment for future generations, and we will continue to work toward reducing our investments in fossil fuels to help achieve that future.”

The deputy leader added that “it’s all well and good” to declare a climate emergency, but necessary action must follow to reduce the council’s impact on the planet.

He said: “We need all need to work together across neighbourhoods, communities, towns and cities to achieve real change. That means the Government working with and actively supporting councils, businesses, community groups and residents to tackle this issue – before it is too late.”

The council has established a climate emergency commission to examine the ways in which the authority can reduce its emissions.

The authority also cited controversial Mini Holland, or Enjoy Waltham Forest, cycling scheme as another method by which it is working to reduce pollution.

A trial Low Plastic Zone has also been established in Leytonstone town centre to encourage small businesses to move away from single-use plastics.