Assurances sought over ‘war crimes’ pension investments

A Welsh council has been asked to ensure that it is not investing in companies that could be linked to potential war crimes in Gaza.

At a Powys County Council meeting on Thursday, March 6,  the question will be posed to the chairman of the Powys Pensions and Investments committee Cllr Peter Lewis by Michael Brown in the the questions from members of the public section.

Mr Brown asks: “Will the council ensure that none of its pension fund investments are at risk of benefiting companies that may be linked to potential war crimes, given the mounting legal evidence of acts of genocide that are being committed against the civilian population of Gaza.

“It is important that the council protects its present and future pensioners from any risk that their funds have knowingly been invested in such activity.”

Concern

Cllr Lewis said: “Concern about the Middle Eastern conflict has been raised and is discussed at Powys Pensions and Investment Committee.

“We hold ourselves to the highest standards of stewardship and are currently reviewing our investment beliefs and strategies that inform our Responsible Investment Policy.”

Cllr Lewis explained that their legal duty is to invest in the “best financial interests” of pension scheme members.

He said that the investment strategy now includes a policy on ESG (Environmental, Social, and Governance) considerations and that they have “prioritised” de-carbonisation.

Cllr Lewis said: “The Middle Eastern conflict is now another significant concern for LGPS (Local Government Pension Scheme) funds.

“Focus on the social element of ESG is increasing, with performance of companies impacting on human rights issues of people and communities in which it engages.

“Such considerations are factored into investment decisions.”

“Stewardship role”

The Powys fund invests through the Wales Pension Partnership (WPPWPP) in several  long term investment contracts with dozens of asset manager firms.

Cllr Lewis believes that the committee’s “stewardship role” means that it should influence through engagement with companies, and this would be through its asset managers Robeco, who operate as WPP’s voting and engagement partner for all pooled investments.

Cllr Lewis said: “While we don’t invest in Israel as a nation, several companies may be operating there, and Robeco will be engaging with them on behalf of the WPP and the Powys Pension Fund.

“The LAPFF (Local Authority Pension Fund Forum) have been carrying out engagement on behalf of the member funds, liaising with Palestinian and Jewish interest groups in respect of companies operating in the occupied region where member funds have some investment.

The focus of this according to Cllr Lewis is to “encourage” companies operating in the area to “review and have regard” for the human rights of all individuals with whom they interact in the conduct of their operations.

In response to the answer Mr Brown will be allowed to ask an extra question at the meeting.