Southwark (Parliament Politics Magazine) – Southwark Council confirmed it will withdraw pension fund investments from companies supplying arms to Israel, citing ethical concerns.
The decision, according to Council chairwoman Sarah King, was adopted in response to “the horrifying scenes of suffering, death, and famine in Gaza” after Israeli military action started after Hamas attacked in October 2023.
In order to support worker retirement benefits, the council will be “seeking removal of investments in companies listed by the United Nations as being linked to the occupation of Palestine” from its pension fund, she said.
The declaration is made as National Education Union demonstrators are scheduled to assemble outside the Tooley Street headquarters of Southwark Council this evening, demanding that the council stop investing in businesses with ties to Israel.
Speaking today, Cllr King said:
“My heart goes out to those in our community who have been affected by this senseless war.
I have heard calls from people right across Southwark that they don’t want to see their council inadvertently investing our pension funds in activities linked to this conflict.
The council has been working towards this with the managers of our pension fund investments, but I want to go further by building the UN Genocide Convention into our investments framework and in the meantime seeking removal of investments in companies listed by the United Nations as being linked to the occupation of Palestine.”
By incorporating the UN Genocide Convention into its investment plan, Southwark Council would become the first local government to be able to divest investments from businesses linked to genocide as defined by the International Court of Justice.
The council will also divest from businesses that are listed by the UN as being involved in human rights violations and operating in occupied territories. It will also urge the London Collective Investment Vehicle, which manages the investment pension funds for local governments in London, to follow suit.
Southwark’s Liberal Democrat opposition leader Cllr Victor Chamberlain welcomed the announcement, stating:
“This is a welcome, if overdue, step from the council. It’s absolutely right that all avenues are explored to make sure that the council’s investments are consistent with our shared values of human rights.
We’ll be monitoring this closely to make sure that today’s commitments are followed through, and will continue to support the work of Liberal Democrats in Parliament who are fighting hard to ensure that the United Kingdom is taking as much action as possible to bring this humanitarian crisis to an end, a return of the hostages, and bring about a lasting peace.”
What are the ethical considerations of divesting from arms companies?
Arms manufacturers make weapons that generally contribute to conflict, human suffering, and violations of international humanitarian law.
Making an investment in these companies could be understood to indirectly support war, violence, and human rights violations, in opposition to the values of peace, justice, and human dignity. Divestment aligns investment portfolios with ethical values, which place life and global stability in focus.
Arms manufacturers and the trade in weapons may foster conflict, resulting in forced displacement, greater poverty, and insecurity, particularly in vulnerable populations attuned to the Global South. The action of divestment makes a symbolic and operational statement that parents cannot profit from the death and suffering of others.
It contributes to international targets such as the United Nations Sustainable Development Goals, which seek to limit practices that incite violence and inequalities.