Merton Council has cut the amount it invests in companies involved in fracking.

Last month it was revealed that the council was investing the highest percentage of its pension fund of any London council in fracking.

But now Councillor Owen Pritchard, chair of the council’s Pension Fund Investment Advisory Panel, says the council has reduced the amount of money going to certain investments.

Addressing a meeting of the panel on Tuesday (October 2) night, he said: “Over the past few months, specifically over the past six weeks there’s been lot of talk about the divestment from fossil fuel targets.

“In March of this year our exposure to fossil fuel was more than 7%, That is an extraordinarily high figure I think given the climate that we have for ESG (Environmental, Social and Governance in investments).

“And the current projection is that our exposure will be round about one half of a percent by March next year.

“That is extraordinary and that has come through no public commitment just from putting ESG at the heart of the strategy.”

He added that the move puts Merton ‘streets ahead’ of other councils that are claiming to reduce their investments in fossil fuels.

Cllr Pritchard said that the council’s current investment in companies involved in fossil fuels is down to 2%.

Data released last month showed that more than £36 million had been invested in fracking companies by Merton Council.

The borough invested the highest percentage of its pension funds of all councils in London at 5.7%