Frustrated campaigners attack Waltham Forest and the London Collective Investment Vehicle for slow progress on divesting pension funds away from arms companies linked to Israel, reports Sebastian Mann, Local Democracy Reporter
Frustrated campaigners have attacked Waltham Forest Council for its “lack of progress” in divesting pension funds from companies linked to the global arms trade.
Waltham Forest for a Free Palestine (WF4FP) has been campaigning since last year for the town hall to divest funds from companies connected to Israel.
The group opposes Israel’s war against Hamas in Gaza, which has seen more than 65,000 Gazans killed since 7th October 2023, when Hamas fighters killed 1,200 Israelis.
The responsibility for where the council’s pension funds are invested lies with the London Collective Investment Vehicle (LCIV), which manages a pool of funds belonging to the capital’s 32 borough councils.
Following a quarterly pension committee meeting on Wednesday (24th), a WF4FP spokesperson said: “Last night, we listened to the same excuses we’ve heard at every pension meeting for the last year since the council agreed to divest.
“As usual it seemed the councillors on the pension committee turned up to the meeting not having done their homework – two members weren’t even present.
“They performatively asked some questions about the LCIV, mostly to blame them for lack of action on properly divested funds.”
Waltham Forest was the first council to begin the divestment process and says “work is proceeding as planned” on “ascertaining the financial impact of any arms exclusion policy on the pension fund, which is essential before any next steps can be taken”.
A spokesperson for the town hall said: “We can only act as a voice within the CIV, as we do not have direct control over the equities we invest in.
“We cannot divest from said equities without considerable financial detriment to the fund. We continue to support the efforts of the CIV in its attempts to influence said companies to reduce or eliminate their role in human rights abuses globally.”
In a recent update from the LCIV, the body said: the rising death toll in Gaza was a “humanitarian tragedy” and it was right that institutions, including pension funds, were “being called upon to reflect on investment responsibilities”.
However, its next steps “must be grounded in facts, guided by respect, and underpinned by a clear understanding of investment responsibilities within the [local government pension scheme]”.
It added: “At its core, London CIV exists to help local authorities honour their promise to deliver secure pensions for local government workers and, equally important, to ensure that promise is sustainably upheld so taxpayers are never left to pick up the pieces.
“That is our legal and fiduciary duty, and we must focus on that primary purpose while also using our influence to encourage higher standards of conduct in the companies in which we invest.
“What’s more, identifying exposure is just the start. The critical question is what to do about it. Where concerns are credible, we believe in engagement: challenging companies to improve policies, strengthen oversight and conduct proper human-rights due diligence.”
In this context, “exposure” refers to the fund being linked to controversial markets, such as weapons.
Representatives from the LCIV were not in attendance on Wednesday but were said to be attending the next meeting.
At a meeting in July, the LCIV told councillors it was assessing its investments in twelve companies, but the representative could not name them when asked.
The WF4FP spokesperson added: “We are continuing to campaign for full divestment and an end to the Council’s complicity with genocide and the Zionist regime.”
Zionism is a western movement that seeks to establish, and now maintain, a Jewish nation in what is now the state of Israel.
The group’s Palestine flag, which has become a symbol of anti-Zionist belief, was confiscated on the way into the town hall. The spokesperson said this was “shameful”.
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