Southwark council announces pension fund divestment from firms supplying arms to Israel

Since December 2023, Southwark Pension Fund has been monitoring its exposure to the United Nations’ (UN) database of 97 companies which have links to Israeli settlement activity within the occupied Palestinian territories.

The Palestine Solidarity Campaign (PSC) lists Southwark Pension Fund as having more than £97m in investments which are linked to Israel and its assault on Gaza.

The council announced that it would be taking further action to divest pension fund investments from firms which are profiting from activities within conflict zones and countries which are linked to alleged genocide.

Council leader Sarah King said: “We have all seen the horrifying scenes of suffering, death and famine in Gaza since Israel began military action following the appalling murders and kidnappings by Hamas in 2023.

“My heart goes out to those in our community who have been affected by this senseless war. I have heard calls from people right across Southwark that they don’t want to see their council inadvertently investing our pension funds in activities linked to this conflict.”

King added: “The council has been working towards this with the managers of our pension fund investments, but I want to go further by building the UN Genocide Convention into our investments framework and in the meantime seeking removal of investments in companies listed by the United Nations as being linked to the occupation of Palestine.

“We will now be looking at our pension fund to implement this. I want the council to explore all avenues to give both pension scheme members and residents the assurances they need.”

Southwark's Liberal Democrat opposition leader councillor Victor Chamberlain said it was a “welcome, if overdue” move from the council.

Chamberlain said: “It’s absolutely right that all avenues are explored to make sure that the council’s investments are consistent with our shared values of human rights.

“We’ll be monitoring this closely to make sure that [Monday’s] commitments are followed through, and will continue to support the work of Liberal Democrats in Parliament who are fighting hard to ensure that the United Kingdom is taking as much action as possible to bring this humanitarian crisis to an end, a return of the hostages, and bring about a lasting peace.”

The issue of divestment of pension investments from firms linked with Israel's military campaign and activities in the occupied territories has been raised at several London councils.

A petition backed by more than 3,000 residents called on Lewisham Council to divest its pension scheme from such firms. The Green opposition group brought a motion for full divestment and full disclosure which was amended before being approved.

Lewisham council said it has started working with other chairs of other London pension funds to develop a new exclusion framework, but warned “it won’t be a quick process”.

Hammersmith and Fulham Council has so far declined to take any action to divest from companies despite calls locally, while Kingston Council has agreed to start an examination of its pension investments.

Southwark Council will take a number of actions in relation to its pension fund investments, including calling on the London Collective Investment Vehicle (LCIV), the investment pool for London-based Local Government Pension Schemes, to create a more robust framework to enable future exclusions of investments linked to conflict, military occupation or genocide.

The council will also take action to steer investments in pooled funds that are linked to conflict or military occupation.

The council is set to become the first local authority to build the UN Genocide Convention into its investment framework, so that it can choose not to invest in any state found by the International Court of Justice to be in breach of the convention.

Southwark Pension Fund will develop a plan to implement this with relevant country and sector-specific exclusions.

Additional reporting by Dorothy Stein.