Council ‘considering all factors’ in pension fund divestment

Camden Council says it is mulling different options over ‘responsible’ pension funds investment, after another London local authority recently pulled funds from  arms traders amid activist pressure.

Waltham Forest Council recently committed to withdrawing investments linked to arms producers, in a move welcomed by Pro-Palestine campaigners.

Local campaign groups have made similar demands to Camden Town Hall to “divest” from the arms and fossil fuels industry. 

A council spokesperson said the pension fund “takes its duty as a responsible investor very seriously and is highly aware of the environmental, social and governance consequences of how it invests.”

“It works closely with the Local Authority Pension Funds Forum to engage with companies on human rights issues to evaluate any risks and carry out robust impact assessments,” they said.

The council did not comment on Waltham Forest’s decision to divest, adding only that “work is ongoing” with fund managers and the pensions committee to ensure “all factors are considered”, including those concerns raised by councillors and Unison members.

The decision over divesting falls to the committee, whose members have a legal duty to ensure pension funds generate enough money to sustain the benefit.

On 1 July, activists from Camden Friends of Palestine descended on the Town Hall, demanding the council back an immediate ceasefire in Gaza and alleging it was directly funding millions into Israel through its pension scheme.

A council spokesperson rejected this claim, arguing that its investments were exposed but not direct.

Days later, the local branch of the Palestine Solidarity Campaign (PSC) and representatives of Unison urged the committee to listen to union members’ concerns that they “don’t want our pensions funded by death and destruction, by war and occupation”. 

Their pleas drew mixed responses. Cllr Matthew Kirk argued those investments that were not ESG (Environmental, Social, and Governance) compliant represented “a tiny percentage of a £2 billion fund…approximately 1.5 per cent”.

But committee chair Cllr Rishi Madlani welcomed the discussion, saying divestment is an “emerging area where we can do more”.

On Tuesday 3 September, the Foreign Office announced it would halt 30 of its arms exports to Israel, explaining there was a “clear risk” they could be used in violation of international law.