Islington Council has been handed a clear mandate by pension fund members to pursue a programme of responsible investment that could see holdings in companies linked to Israel and arms manufacturing sold off, councillors told The New Arab following the publication of an independent consultation report.
What councillors heard
The six-week consultation attracted a strong response from pension fund members, with councillors reporting that more than 80% supported proposals to tighten the council's responsible investment policy and to divest from firms associated with illegal settlements in the Occupied Palestinian Territories. The report was presented to the council's pensions committee on 21 July.
- Majority backing: Over 80% of respondents in favour of strengthening investment policy.
- Specific holdings under scrutiny: a £1.4 million stake in US technology firm Palantir was singled out because of the company's military contracts.
- Next steps: councillors agreed to seek further legal advice before making any final decision on divestment.
Legal and procedural barriers
While campaigners have pressed the council for immediate action, committee members emphasised that any move to sell investments must comply with legal obligations that govern local authority pension funds. Councillors accepted the report's recommendations at the pensions committee but stopped short of instructing an immediate sale, opting instead for additional legal advice to establish what is permissible under current regulations and fiduciary duties.
"The people whose money it actually is want to see this divestment happen," Green Party councillor and London Assembly member Benali Hamdache told The New Arab.
Local significance
Islington administers a pension fund that provides retirement income for council employees, from cleaners and social workers to councillors. Decisions on how that fund is invested affect the long-term financial security of members as well as raising ethical questions about public money supporting companies involved in military contracting or operations in disputed territories.
Campaigners — who have been lobbying the council for more than two years — expressed frustration at the delay but said the consultation validated their case. Councillors noted unusually high public attendance at the pensions committee meeting chaired by Labour councillor Paul Convery, with around 20 members of the public present, the largest turnout he had seen for such a meeting.
| Item | Detail |
|---|---|
| Consultation length | Six weeks |
| Committee meeting date | 21 July |
| Reported support | More than 80% of respondents |
| Highlighted holding | £1.4 million stake in Palantir |
What to expect next
Councillors will now obtain legal advice to clarify the scope for divestment and whether the pension fund's fiduciary duties allow for sales based on ethical criteria. Any future decision to sell would be taken in light of that advice and in accordance with statutory requirements governing local authority pension funds.
For fund members and Islington residents, the issue raises immediate questions about how public money should be managed and whether ethical considerations can be reconciled with duty to secure pensions. The council's next public pensions committee meeting will be watched closely by campaigners and members alike.
