No ‘Divestment’ Of Israel Pensions Investments

A call for Pembrokeshire County Council to end its involvement in a pension fund that has invested millions with companies connected with Israel, will see engagement rather than “divestment,” councillors heard.

At the July meeting of Pembrokeshire County Council, two related, submitted, questions were asked by members of the public.

Both asked for the council to divest its involvement in the local government pension scheme the Dyfed pension fund, which they say has more than £60m invested in companies connected with Israel.

Suzanne Radford-Smith said:

“I am writing to draw attention to the fact that Dyfed pension fund has £64m invested in companies that are connected with Israel and to ask that Dyfed pension fund divests from these companies.

“Many of these companies are making arms and weapons being used by the Israeli army in the war on Palestine which makes them complicit in the genocide in Gaza.

“I believe this makes PCC also complicit in that genocide.

“Will Pembrokeshire County Council divest the pension fund from these companies?”

A similar question by Marjorie Hawkins said: “I receive a pension from Dyfed Pension Fund and have recently found out that Dyfed pension fund has £64m invested in companies that are connected with Israel.

“Many of these companies are making arms and weapons being used by the Israeli army in the war on Palestine which makes them complicit in the genocide in Gaza.

“I am very dismayed to find out this information and feel that this makes PCC (as one of the county councils in Dyfed Pension Fund) also complicit in that genocide.

“I spent over 10 years working as a social worker in Pembrokeshire. 10 years before this I was a social worker in Swansea and also worked for the NHS previously. I chose to work in jobs that were not involved in making profits or exploiting other people. I am very upset and outraged to find that the pension I receive is complicit in a genocide that is ongoing and we witness daily.

“Will Pembrokeshire County Council divest the pension fund from such companies that are complicit in this genocide?”

Responding, Cabinet member for Corporate Finance, Cllr Joshua Beynon said the scheme, not administered by Pembrokeshire, had “a responsible investment policy which sets out its approach to responsible investing, including human rights”.

He added: “The fund believes that engaging with investee companies is likely to be more effective than divestment in improving desired outcomes and the committee encourages fund asset managers to engage with the companies they invest in. In addition, the fund believes in collective engagement and exercises a voice across a range of environmental, social and governance topics.”

He went on to say the engagement was and dialogue was “a more holistic approach than blanket divestment, particularly where a direct causal relationship may not exist between supply and impact”.

He explained: “For example, a company that supplies components to support renewable-infrastructure projects may also supply components to companies with contracts with law-enforcement agencies.

“It is thus our investment managers who are best placed to understand this nuance, considering all relevant Environmental, Social and Governance factors in their investment-management decisions, as well as their investment stewardship.

“The fund endeavours to identify and engage organisations on human rights issues through various channels including its membership of the local authority pension fund forum, the engagement programme of its investment manager, and via the voting and engagement activity undertaken by the funds voting and engagement provider.”

He concluded: “Engagement will continue on these issues with all its service providers, partners and other stakeholders, evolving its approach as necessary to meet its regulatory and fiduciary requirements.”