The pension committee confirmed it can pull its fund without any ‘material impact’ on the town hall’s financial health, though activists remain concerned at a lack of speed, reports Sebastian Mann, Local Democracy Reporter

Activists call on the council to divest from Israeli-linked companies at a previous demonstration outside the town hall

Waltham Forest Council says it will be able to divest its pension funds from companies linked to the arms trade, after years of work.

The pension committee confirmed it can pull its funds without any ‘material, detrimental impact’ on the council’s financial health at a meeting on Wednesday, 25th March.

Waltham Forest does not manage its own pension funds – it is overseen by the London Collective Investment Vehicle (LCIV), which also handles the other 32 boroughs.

It has faced two years of pressure from local activists, including Waltham Forest for a Free Palestine (WF4FP), who have held demonstrations outside the town hall and advocated for divestment during meetings.

While the council has looked more broadly at the arms trade, protestors focused their efforts on securing divestment from companies linked specifically to Israel in the wake of its war in Gaza, which has seen 73,000 Palestinians killed and more than 2,000 Israelis.

Committee chair and councillor Johar Khan said after the meeting: “This next step has taken years of careful work, detailed analysis and a focus on doing the right thing in the right way.

“Our members expect their pensions to be invested responsibly, and we are proving that it is possible to align our investments with our values without compromising financial strength.”

The council says the divestment process will begin once the LCIV has identified suitable alternatives.

A spokesperson for WF4FP, however, said the group was “deeply disappointed” by what she called a “failure to take meaningful steps” towards divestment.

She said: “Despite repeated commitments, the committee confirmed that no substantial progress has been made. Instead, they announced yet another round of letters to the LCIV and further discussions about a responsible investment matrix that still has not materialised. We were told to wait for updates in future minutes, a familiar pattern of delay.

“It is now more than two years since the start of the genocide in Palestine, with similar patterns of violence unfolding in Lebanon and attacks on Iran, all while Waltham Forest Council continues to invest in companies enabling these atrocities.”

“We need action, not more letters, delays, and shifting definitions,” she added.

In their most high profile stunt against the council, back in November, WF4FP threw ribbons of paper painted to look like blood-stained money at the committee from a raised viewing gallery. The council branded the move “disappointing and distressing”.

Waltham Forest became the first council in the country to divest from fossil fuels in September 2022, but the process took five years.

Cllr Khan called it a “complex operation” and said the council was on track to divest from the arms trade in “half that time”.

He said the council, in partnership with LCIV, will also look to exclude UN-identified companies linked to human rights abuses.

“We are building a framework that reflects not just where we are today, but where we believe responsible investment must go in the future,” he added.

“Our work towards this commitment requires agreement across the London CIV’s local authority partners. It’s a complex process, but – as we have before – we will continue to lead the way in responsible, ethical investment, as our fund members and residents expect.”

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