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Unbelievable?

Who should be better informed about the widespread criminality propping up the profits of water companies than the Environment Agency?


Yes, the Agency took a while to catch on to the widespread criminal pollution exposed by WASP's Prof Peter Hammond in 2021. It had either failed to spot that or been actively covering it up but by the end of that year it was very well known and the Agency had started its own investigation which still rumbles opaquely on.


So who would the Environment Agency Pension Fund invest in?


The Agency has a Pensions Committee made up of various trained staff and its accounts were signed off in 2023 by the CEO of the Agency. It is a big fund with many investments across the world and big claims about responsible investment.


Remarkably, among many others, it invests in the privatised English water industry - the one it has failed to regulate and the one that is making money out of criminal pollution by short-changing on investment going into the company and maxing money going out to shareholders.

It seems quite remarkable that the Agency bosses must know how these companies behave, breaking the law on an industrial scale and only profiting from such activity because the regulator - that will be the Environment Agency, does absolutely nothing about most of it. Pollution stays profitable and the Agency's pension fund benefits from it.


The fund is not something farmed out to managers who might make mistakes by investing in criminally active companies regulated by the Agency - it is tightly wrapped with committees. The fund is a big one and this is a small component but the principles littering the annual report look like mere window dressing in the light of this example.


Here are some of the relevant sections of a very long report on the fund for 2023.

And signed off by the boss


And for anyone who wants to look further - maybe take a strong coffee..



The tick-box culture of responsible investment is laid bare.




But perhaps the strangest of all - They have identified the problem that they are responsible for yet continue to benefit from their own failure as a regulator.


Can we believe that no one saw the water company shareholdings as a conflict of interest? So what happens next? The standards in public life and organisations are now so degraded that we have no expectation that anything will be done about it but let's end on this question -


Is the Environment Agency's Pension Fund benefitting from the proceeds of crime and wrongly paid dividends from companies benefitting from its policies and procedures keeping pollution profitable?




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7 Comments


Ray Walton
Ray Walton
Aug 05

ALSO, IT MAY BE WISE TO INVESTIGATE AS TO WHERE OTHER UK GOVT REGULATORS, OFWAT/DEFRA/NATURAL ENGLAND AND THEIR PARTNERS AND CONTRACTORS LIKE WATER UK AND OTHER GOVERNMENT DEPARTMENTS HAVE INVESTED THEIR PENSION FUNDS AND RECEIVE THOSE DIVIDENDS!

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Steve Empidog Reynolds
Steve Empidog Reynolds
Aug 02

Unbelievable or maybe not, I knew there was something smelly going on with the limp wrist-ed EA

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Stefan Drew
Stefan Drew
Aug 01

Apparently the pension fund and EA are separate organisations and EA would not control the investment portfolio.


However there would be staff members on the pension fund.


To make it more complicated the fund has a duty to invest wisely so as to get a good return for their members … so there could be conflict between the moral and financial imperatives.


As with many if these things there is no simple answer.


However, it can be argued that this fund is oit adhering to its own guidelines as responsible investors.

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Michael McNicholas
Michael McNicholas
Sep 14
Replying to

I agree with you Stefan but I would add that the policies, as outlined on page 22 of the EAPF stewardship code, are written as an ethical get out clause. If the organisation cannot write a code and policy which clarifies their ethical investment stance then they are positively engaged in supporting organisations who may be acting in a criminal way. I understand the need for investing in the areas that provide high returns to support pensioners, an that is right until it bumps up against ethical choices it seems to take the view that that ROI trumps ethics. OK that is an exaggeration but the message is the same.

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je32064
Aug 01

This beggars belief!

Shame on them.

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