New data shows Lewisham still invested in US oil and gas

Lewisham council committed to fossil fuel divestment in 2020, but TBIJ found the pension scheme had over £77m invested in a JP Morgan private fund with large oil and gas holdings.

The TBIJ investigation found council pension schemes around the UK still invested in US fossil fuel expansion including many liquified natural gas (LNG) terminals, to the dismay of members.

Lewisham council declared a climate emergency in 2019 and then swiftly published its first climate emergency action plan, with an ambition for the borough to achieve net-zero emissions by 2030.

The climate action plan included a commitment to transition the pension scheme out of coal, oil and gas and into low carbon investments.

By September 2025, Sian Eiles, councillor and chair of Lewisham's pension investment committee, confirmed that the council had divested £900m from fossil fuels.

But the TBIJ investigation found the pension fund still invested in oil and gas.

Lewisham's pension fund is worth £1.8 bn and invests over £77m with Investment Manager JP Morgan, in its JP Morgan Infrastructure Investment Fund.

The JP Morgan fund has a wide range of investments, including renewables, but also has significant interests in US oil and gas firms.

These firms include Enstor Gas, which operates a giant underground storage facility for natural gas, including Liquid Natural Gas (LNG), in Mississippi.

Dr Andrew Boswell from Climate Emergency Science Law is an expert in the science of carbon emissions from LNG. He told Salamander: 

"LNG made from fracked gas in the southern US is one of the most polluting fuels— directly driving global heating — because liquefaction and transport are energy-intensive, and methane leaks occur during extraction and all along the supply chain.

"That methane causes rapid short-term heating, so investing in LNG accelerates rapid climate change."

The JP Morgan fund also has a large stake in South Jersey Industries, which has two gas subsidiaries, and the fund holds a 50% stake in Third Coast, an offshore oil company.

Third Coast spilled over 1m gallons of oil into the Gulf of Mexico in 2023.

Lewisham is one of 20 councils which are invested in the JP Morgan Infrastructure fund, with a combined total investment of £4.5bn.

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How did this happen? In the first Climate Emergency Action Plan published in March 2020, the council made a commitment to "using our financial decision-making to drive change."

It explained that around half the fund's assets were in equity holdings, and it was making plans to "transition our existing equity mandates into low carbon equivalents in early to mid-2020."

This developed into the pension fund's "climate transition and net zero policy".

In March 2024 the council reported an 84% reduction on scope 1 and 2 emissions for listed equities from the pension fund.

However, it seems that private funds did not receive the same attention.

TBIJ suggest that council pension funds and campaigners have focussed on selling shares in companies like BP and Shell, while private funds - which can invest in a wide range of instruments and sectors - have received much less attention.

The investigation found that 47.2% of Lewisham's pension fund is invested in the London CIV while the remaining 52.8% is independently managed, which makes it easier for Lewisham to control it.

However, there is concern that the pension reforms which were introduced on 1 April will give giant pools like LCIV greater influence, and individual pension funds will have less.

The reforms are also pushing for greater investment in private markets.

London Assembly Members, councillors and campaigners across London raised concerns about the impacts on divestment for Palestine in March 2025, with a campaign called Shake the CIV.

US oil and gas firms are receiving a huge boost in profits following the US attacks on Iran.

Dr Boswell said: "TBIJ investigations show these investments can be hidden when fund managers are used, meaning councils, like Lewisham, may be bypassing proper checks.

"Pension policies need reviewing so councils can clearly see where their money is invested." 

The annual update on Lewisham council's climate action plan will be in June. The findings suggest that pension divestment needs to go back on the agenda.

Lewisham council told TBIJ that it could not comment during the pre-election period.

Updated 26 April 10:05 to add comment from Dr Andrew Boswell.

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