Given that the Climate Emergency is already causing death and misery around the world one might expect fossil fuels to be excluded from its Ethical Funds (available to members in the DC part of the scheme). However careful reading of the USS 2026 TCFD report reveals that the carbon intensity of the ‘Ethical Growth’ fund is over 3 times that of the default Growth Fund! USS helpfully explain that the Ethical Fund’s increase in emissions has been driven by increased exposure to ‘industrial gas and utility companies’. But USS ‘do not believe that the higher intensity of the ethical funds compared to other DC funds is inconsistent with their stated aims’.
In other words, if you are concerned about the carbon footprint of your DC contributions and you have opted for the ‘Ethical Fund’ you are mistaken (or you might think you have been misled).
Of course, given that the Climate Emergency will have significant impacts within the foreseeable future, USS should divest from fossil fuels and the banks that fund fossil fuels for financial as well as ‘ethical’ reasons.
USS does have some exclusion criteria for their ‘ethical funds’:
Arms and weapons production
Companies involved in bribery and corruption
Companies that violate human and labour rights
Cosmetics where animal welfare is not assured
Gambling
Nuclear power
Pornography
Tobacco
Given these exclusion criteria, you might wonder whether the default DC fund and indeed the much larger Defined Benefit fund invests in Arms and Weapon Production, Companies that are involved in Bribery and Corruption, and Companies that violate human rights. And the answer would appear to be Yes – USS invests in Arms companies (Rolls Royce, Saab) Companies involved in Bribery and Corruption (Glencore) and Companies that violate Human Rights (see our analysis of their companies supporting the genocide in Gaza).
If you want to complain to USS about their ethical standards (or the lack of them) you can contact them on complaints@uss.co.uk. Please let us know if you get a reply (ussdivest@gmail.com).