Eight in ten respondents back pension fund divestment proposals

The consultation asked for views on actions to make the pension fund – already a trailblazer in ethical investment – even more aligned with the council’s values.

Currently, holdings in companies profiting from the conflict in Gaza stand at 0.1% of the fund's total value, and the consultation asked for views about steps to take that down to 0%.

Over the course of six weeks, pension fund members were asked to respond to an online survey, which asked about three specific proposals:

• The Pension Fund Committee’s proposal to update its responsible investment statement to make clearer the fund’s position on companies whose activities raise human rights concerns. 
• Disposing of investments in the small number of companies that are on the UN High Commissioner for Human Rights database of businesses involved in specific activities in the illegally Occupied Palestinian Territories. 
• The fund currently has a holding worth approximately £1.4m in Palantir Technologies. While the Pension Fund Committee understands that Palantir is not a manufacturer or supplier of weapons, it is understood that it is heavily engaged in the development of software that has weapons applications, and that its AI tools and other technological solutions have been deployed in the conflict between Israel and Palestine. Subject to taking steps to confirm the nature of Palantir’s activities, the Committee proposed ending its investment in Palantir. 

All three of these proposals were supported by a majority of respondents – for each question, at least 80% of respondents agreed or strongly agreed. Prevision, the data collection experts that carried out the survey on the Pension Fund’s behalf, described the 6.1% response rate – 1,343 of the 22,000 members of the Pension Fund – as “a very respectable response rate”. 

The full results have been published online. Now, the Pension Fund – in line with its legal responsibilities – is taking the necessary steps to fully assess the results, before taking a decision on next steps.

Cllr Paul Convery, Islington Council’s Executive Member for Finance, said: “For years, we’ve been working to make sure our pension fund leads the way in ethical divestment – we’ve withdrawn investments in arms manufacturers, and have significantly lowered our exposure to companies involved in conflicts. 

“We’ve carried out an extensive consultation exercise to understand the views of pension fund members, and many of them have come forward to tell us about the approach they want the fund to take. 

“Having had more than a thousand responses, it’s right – and legally necessary – that we take the time to fully analyse the responses before taking a final decision on our investment strategy. This detailed work is happening at pace, and we expect to announce further steps ahead of the Pension Fund Committee meeting in September.”