Consultation on ending investments in companies linked to conflict and genocide

Following the start of the conflict in Gaza, the pensions fund has already withdrawn from investments in weapons manufacturers. This, and other steps taken, mean that the fund’s exposure to companies appearing on United Nations lists as engaged in activities raising human rights concerns in the Occupied Palestinian Territories is very limited.

Now, the pension fund is set to consult fund members and employers about whether they would support further steps towards final divestment of the fund’s holdings in companies profiting from the conflict – which currently represent 0.1% of the fund’s total value. This is a necessary legal requirement to support an informed decision on whether to divest.

Those steps could include:

• Working with Islington’s pension fund managers to divest from companies listed by the UN High Commissioner for Human Rights.
• Working with the London Collective Investment Vehicle – which will take over management of the pension assets of all 32 London boroughs from April 2026 – to allow Islington and other like-minded boroughs to invest in a fully-divested fund.
• Considering including the UN Genocide Convention in the pension fund’s investment strategy, for example by not investing in any company with operations that are complicit in a State's breach of their obligations under the Convention.

Cllr Una O’Halloran, Leader of Islington Council, said: “Islington’s pension fund has been leading the way when it comes to ethical divestment in recent years, to make sure our pension fund reflects our values and our community.

“As a council, we’re utterly horrified by the senseless, needless death that we’ve seen in Gaza in recent years. We know that many of our pension fund members also care deeply about these issues. If working towards full divestment proves to be what members want, that will give the pension fund the mandate it needs to follow this through.

“This isn’t just about Islington - it’s about setting a standard for local government across the country. Islington's pension fund is in healthy surplus with its ethical investments being amongst the best performing assets.  We’re working with other boroughs to push for change at the London Collective Investment Vehicle, and we’ll keep pursuing ethical investment.”

Further details on the timings and arrangements for the consultation will be announced in the New Year.

Islington’s pension fund investments are always made in accordance with the council’s high ethical standards. Since 2016, the council has been on a mission to decarbonise the fund by 2050 or earlier.