Waltham Forest’s Pension Board and Committee have “expressed concern” over the fund’s exposure to companies that have been accused of human rights violations, particularly those linked to Israel.
At a Pension Board meeting last week, a document presented to members detailed that the fund is “investigating its options” within the regulatory framework of the Local Government Pension Scheme (LGPS) regarding investments in companies linked to Israeli weapon sales or illegal settlements.
“Members of the board have expressed concern that the pension [fund] is investing in companies that have interests in Israel.
“The Pension Committee are concerned about any exposure the fund has to companies accused of human rights violations anywhere in the world as well in relation to the Occupied Palestinian Territories (OPT),” the document wrote.
Scrutiny on Israel’s conduct of its military operation in Gaza has increased as the Palestinian death toll from the Israel-Hamas war has risen to above 37,000, according to Hamas health officials. The war started on October 7 following Hamas’ attack on Israel, killing 1,200 people, Israeli tallies suggest.
Engagement with London CIV
According to the document, Waltham Forest Pension Fund is “engaging” with its managers concerning its exposure to Israeli companies.
Most of the fund’s assets are managed by London CIV, which is one of the eight LGPS pools in England and Wales and has around £30bn of assets under management. The fund explained that it has contacted its pool to share “their concerns and asked how they will respond”.
In 2021, following a report by Human Rights Watch (HRW) detailing “crimes of apartheid and persecution” by the Israeli authorities and events in Israel and OPT, London CIV published its exposure to companies accused of facilitating human rights abuses in the OPT.
London CIV has confirmed to Room151 that it is currently updating its exposure list of companies accused of human rights violations in Palestine as of 31 March 2024.
In 2021, London CIV stated that they are “committed to engaging” with these companies, “using escalation measures if required”.
“We will continue to monitor all relevant lists and identify emerging issues to track exposure to companies accused of being complicit in violations of human rights or international law,” the LGPS pool said.
‘Fall’ of the BDS Bill
Waltham Forest Pension Fund’s statement that it is “investigating its options” regarding its investments in Israeli companies comes as it has been targeted by pro-Palestinian protestors, calling for the authority to divest its funds from Israel.
Alongside Waltham Forest, other pension funds, including Powys, have faced calls to withdraw any investments in the armaments industry and minimise exposure through pooled investments related to Israel.
Previously, efforts to divest LGPS assets from companies linked to Israel were met with legal challenges, with the government putting forward the Economic Activity of Public Bodies (Overseas Matters) Bill, more commonly known as the BDS Bill.
The bill was aimed at preventing public bodies from being influenced by political or moral disapproval of foreign states when making economic decisions unless they are aligned with government policy. While the bill could in theory apply to divestments from any state, in practice, it was particularly aimed at preventing boycotts targeting Israel.
However, due to the UK general election being called on 4 July and the subsequent dissolution of Parliament on 30 May, the BDS Bill did not proceed through all stages in time and therefore could not be given Royal Assent.
Overall, the “fall” of the BDS Bill means that future divestment by LGPS funds from companies linked to Israel can for the time being not be challenged by the new rules.
So far, the Conservative Party has committed to picking back up the BDS Bill if they are re-elected, however, the Labour Party are yet to comment on the matter.
In addition, once a new parliament has been called, if the BDS Bill is picked up again, it must start the legislative process again in a new session, meaning that it could not come to fruition for at least another two years.
When contacted by Room151 on its investigation, Waltham Forest stated that as the document is due to be discussed by its Pension Committee on 27 June, “it won’t be commenting further”.
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