Pension investments in companies trading in the Occupied Palestinian Territories
As a result of questions from myself and members of the public, Merseyside Pension Committee decided to consider a full report at its next meeting (Feb 2022) regarding investments in companies trading in the Occupied Palestinian Territories.
The evidence is very strong. There has been:
Questions, letters, motions and protests by members of Merseyside Pension Fund and the wider public
Two consecutive and critical engagement reports by Local Authority Pension Fund Forum
Advice and reports from the United Nations Special Rapporteur on the situation in the Occupied Palestinian Territories
Government advice on high risk of trade with Occupied Palestinian Territories*
Extensive engagement by the United Nations resulting in a list of 112 companies linked to illegal settlements
Adverse findings against two Britain-based companies by the Department for International Trade and OECD
Realising around £2.7m of investment in 7 companies is of a scale and nature unlikely to cause significant financial detriment to Merseyside Pension Fund members
In accordance with policies agreed by Merseyside Pension Fund and Northern Pool, would Pension Committee agree to consider a report at its next meeting – regarding adjusting its own and pooled investments in such companies?
It was decided the officers should bring a report to the next meeting of Pensions Committee which addresses the points raised and related matters at agenda item 5.3 at the committee meeting of 29 November 2021, thereby allowing the committee to determine what, if any, adjustments in investments might be recommended to officers.
*Foreign and Commonwealth Office overseas business risk advice [EB/106-114] states:
“There are therefore clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity. Financial transactions, investments, purchases, procurements as well as other economic activities (including in services like tourism) in Israeli settlements or benefiting Israeli settlements, entail legal and economic risks stemming from the fact that the Israeli settlements, according to international law, are built on occupied land and are not recognised as a legitimate part of Israel’s territory. This may result in disputed titles to the land, water, mineral or other natural resources which might be the subject of purchase or investment. UK citizens and businesses should be aware of the potential reputational implications of getting involved in economic and financial activities in settlements, as well as possible abuses of the rights of individuals.”
01 December 2021