New call for Welsh pension funds to disinvest from firms that ‘aid Israel’s abuse of Palestinians’

Martin Shipton

A broad coalition of Welsh organisations – ranging from grassroots activists to trade unions, faith groups and political parties – has issued an urgent call for divestment from companies implicated in violations of international law and human rights abuses against Palestinians.

It is taking this call to the next meeting of the Wales Pension Partnership (WPP), which manages pension investments on behalf of local government pension funds. The meeting takes place on Wednesday March 12.

Recent research from the Palestine Solidarity Campaign (PSC) reveals that £1.1bn of Welsh local government pension funds are invested in companies associated with illegal settlements, “apartheid infrastructure”, financing and arms manufacturing. These companies are, claims PSC, directly or indirectly linked to the ongoing human rights violations in Palestine, including mass casualties, forced displacement and the denial of basic human rights, as documented by the United Nations, Amnesty International, and numerous other organisations.

Well-known businesses

They include a large number of well-known businesses including AirBNB, Airbus, Amazon, BAE Systems, Barclays Bank, Boeing, Carrefour, Exxon, Ford Hewlett-Packard, HSBC, Hyundai, Lockheed, McDonald’s, Mitsubishi, Motorola, QinetiQ, Rolls Royce, Serco, Siemens and Sony.

The coalition’s letter highlights that pension funds in jurisdictions including Norway, the Netherlands and increasingly in the UK, have already started to divest from such companies, setting a clear ethical precedent.

The Local Government Association has commissioned a legal opinion on the ability of investment funds to take “non-financial factors” into account. This opinion confirms that funds are certainly able to take ethical considerations into account, and should be consulting with scheme members, including their representative bodies such as trade unions.

Zahid Noor, interim convenor spokesperson for PSC Cymru, said: “We welcome the growing support from a diverse coalition of faith groups, trade unions, political parties, climate, peace and campaigning organisations. Together, we are demanding divestment and ethical pensions that reflect our values of justice and sustainability.

“Ensuring Welsh pensions meet the highest ethical, human rights and environmental standards is both a moral obligation and a prudent financial responsibility.

“The WPP, which manages pension investments on behalf of local government pension funds, has a unique opportunity to lead by example and align its investments with these principles.

“Pensions should not come at the expense of the world’s most vulnerable people. We have made the WPP aware that a genocide has occurred in Gaza, and it must stop funding this injustice. Thousands are calling for decisive action – WPP must act now.

“The WPP’s investments pose significant moral, financial, reputational and legal risks, and may contravene the Well-being of Future Generations (Wales) Act 2015, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises.”

The coalition is calling on the WPP to:

* Initiate divestment from companies listed on the UN Human Rights Office database for operating within illegal settlements.

* Implement robust screening processes to ensure funds are not allocated to companies complicit in violations of international law, with active engagement from WPP fund managers.

* Adopt an ethical investment strategy that explicitly prohibits investments in companies aiding violations of international law.

* Immediately divest from Elbit Systems Limited, Israel’s largest private arms manufacturer, and permanently exclude the company from future investments. Elbit supplies 85% of the drones and other military equipment used by the Israeli military, which has been deployed in attacks on Gaza, resulting in civilian casualties and alleged war crimes.

Future Generations Commissioner

PSC Cymru has welcomed the intervention by Future Generations Commissioner Derek Walker, who has called on the First Minister to initiate an urgent review of public sector pensions in Wales.

Those organisations involved in the coalition include Amnesty Wales; Cardiff County Unison; Cardiff Stop the War; Cardiff Trades Council; Climate Cymru; CND Cymru; Crynwyr Cymru Quakers in Wales; Cymdeithas y Cymod; Global Climate Justice Group; Heddwch ar Waith; Muslim Council of Wales; Na’amod Wales, British Jews Against Occupation and Apartheid; Newport Trades Council; Plaid Cymru; Palestine Solidarity Campaign Cymru; Rhondda Cynon Taf Trades Council; Stop the War Cymru; Swansea Trades Council; Wales Green Party; Wellbeing Economy Cymru; West Wales Climate Coalition; and XR Cymru.

A spokesperson for the WPP said: “Cllr Elwyn Williams, Chair of the Joint Governance Committee, will be making a statement during the meeting.”