We, the undersigned, call on Merton Council to immediately divest from all investments complicit in Israel’s ongoing genocide in Gaza, illegal occupation, settlement expansion, and other violations of international law against Palestinians, as well as those contributing to environmental harm. The Local Government Pension Scheme (LGPS) must be aligned with ethical investment principles, ensuring that Merton’s pension fund is not complicit in genocide, war crimes, breaches of international law, human rights abuses, or environmental harm.
This demand comes from across the Merton community, including current and historic council staff, residents, local organisations, places of worship, and concerned citizens. Pension members of the Merton Pension Fund, have a right to ensure their pension fund is not complicit in violations of international law and climate destruction. Ethical investment is a growing expectation, and Merton Council has a duty to ensure that the pensions of its workers, past and present, are not complicit in genocide, international law violations, war crimes, human rights abuses, or environmental destruction.
Based on a Freedom of Information (FOI) request in June 2024 (F20272), our research shows that £29.1million of Merton Pension Fund investments are complicit in Israel’s severe breaches of human rights. The following entities have been identified within Merton Council’s LGPS investments:
Albemarle Corporation; Alphabet Inc (Google); Altice; Amazon; Atlas Copco; Barclays; Boeing; Dell International; Ford Motor Company; HSBC; Israel Government Bonds; Keter Group; Microsoft; Perrigo; Rolls Royce; Safran; Teva Pharmaceuticals; and Valero Energy
These entities are complicit in Israeli apartheid, illegal settlements, arms manufacturing, and financial support for Israel’s occupation. Their involvement includes:
- Military weapons and combat vehicles (Albemarle Corporation, Boeing, Ford Motor Company, Safran, Valero Energy), by supplying chemicals, weapons, military vehicles, and their necessary components such as fuel and technology, used by the Israeli military forces in their attacks on Palestinians.
- Surveillance, technology, and Cloud Services (Alphabet Inc., Amazon, Microsoft, and Dell International) are provided to the Israeli military to monitor, control, and oppress Palestinians.
- Settlements and occupation infrastructure (Albemarle Corporation, Altice, Atlas Copco, Keter Group, Teva Pharmaceuticals, Perrigo) which are actively contributing to the construction and expansion of illegal Israeli settlements or benefitting from Israel’s occupation and blockade policies.
- Financial and investment entities (Barclays, HSBC, Israel Government Bonds) are financing and investing in the Israeli government and military, supporting the occupation, settlement expansion, genocide, and human rights violations against Palestinians.
As of Merton’s last financial reporting, this amounts to £29.1million.
Our evidence is taken from credible and internationally recognised sources that provide documentation of corporate complicity in Israel’s breaches of international law. These are:
Who Profits – An independent research centre used by the financial industry, monitoring corporate complicity by Israeli and international companies.
The UN Office of the High Commissioner for Human Rights (OHCHR) – Who have identified a list of businesses involved in illegal Israeli settlements, which are built on stolen Palestinian land, in violation of international law. The list is in the database created by UN Resolution 31/36 (March 2016). These settlements have been condemned by the UK Government, who has consistently stated that they are illegal under international law and an obstacle to peace. The UK Government discourages all trade and economic activity with these settlements and advises businesses against involvement in any financial or practical support for them. Such support could expose the Council to potential risk.
Amnesty International and Human Rights Watch reports – Globally respected human rights organisations who have conducted thorough investigations into violations of international law and human rights abuses committed by states and the practices of companies complicit in these breaches.
Forensic Architecture (FA) – An award-winning research agency based at Goldsmiths, University of London. FA develops, employs, and disseminates new techniques, methods, and concepts for investigating state and corporate violence.
In Merton Council’s Responsible Investment Beliefs it states its commitment to climate change as being one of its top priorities.
More than 80,000 tonnes of explosives have been dropped on Gaza since October 2023. Reports, including those by the United Nations (UN), have assessed the destruction, environmental impact of the war and long-term effects of the bombardment. Agricultural lands have been largely destroyed, with one study concluding that of the 170km2 of farmland that existed in Gaza before the war – half the territory – a total of 40 per cent has been destroyed. The greenhouse gas emissions generated during the first two months of Israel’s bombing of Gaza were greater than the annual carbon footprint of more than 20 of the world’s most climate-vulnerable nations. This has been identified as Israel committing ‘ecocide’ by multiple organisations including Friends of the Earth and Greenpeace.
Merton’s investment policy is based on Environmental, Social, and Governance (ESG) principles, with a primary focus on climate change. Investing in companies complicit in war crimes, apartheid, and environmental destruction is in direct contradiction of these principles. By continuing to invest in these companies, Merton Council Pension Funds directly undermines and is not in compliance with its own ethical stance and adherence to sustainability policies and climate action commitments.
In its recent audit report, Merton Council Pension Trustees explicitly refused to invest in companies linked to Ukraine, Russia, or Belarus due to the risk of sanctions. Given the ongoing International Criminal Court (ICC) and International Court of Justice (ICJ) cases regarding Israel’s actions in Gaza, companies involved in Israel’s occupation face similar risks.
In Merton Council’s Pension Fund annual report for 2023/24, Councillor Laxmi Attawar acknowledges in the Chairperson Statement that as with Russia and Ukraine, Israel’s bombardment in Gaza has a “long and short-term impact on investments across all the asset classes”. The Merton Council Pension Fund must act consistently and divest from all high-risk, unethical investments and ensure adequate due diligence practices are in place to avoid all risk resulting from complicity with Israel.
There is an increasing expectation for local authorities to take responsibility for their investments by divesting from investments complicit in Israel’s breaches. Councils across the UK, including Waltham Forest, Islington, Lewisham, and Tower Hamlets, have already made commitments to ethical investment and divestment. Additionally, Manchester City, Bristol City, North Somerset, Sandwell, Dudley, and Oxford City Councils have passed motions calling on their Pension Funds to divest. As part of a Joint Pension Scheme with Waltham Forest Council, Merton Council should follow Best Practice and divest.
Israel’s genocidal assault on Gaza has killed tens of thousands of Palestinians, nearly half of them children, and displaced 90% of the population, multiple times. Nowhere is safe, with homes, hospitals, and schools repeatedly targeted. Israel’s blockade and destruction of essential infrastructure have caused famine. UN experts in June 2024 declared this to be a form of genocidal violence. In January 2024, the ICJ handed down an interim ruling affirming there is plausible evidence of Israel committing genocide. As a State Party to the Genocide Convention, the UK has a binding obligation to employ all means reasonably available to prevent and deter further genocidal acts. In June 2024, UN experts called for an end to arms transfers to Israel, warning that financial institutions funding arms suppliers risk complicity in atrocity crimes. And in July 2024, the ICJ issued an advisory opinion finding multiple and serious international law violations by Israel towards Palestinians and finding Israel responsible for apartheid. The court placed a responsibility on all states and the United Nations to end these violations of international law. The ICC is currently investigating war crimes.
Failure to divest carries potential financial and legal risks for the pension fund. Companies and public bodies complicit in these activities face increasing legal challenges, sanctions, and reputational damage, all of which could pose large financial risks to the Pension Fund. Continued investment could expose Merton Council to legal action for complicity in crimes under international law.
Lastly, given the widely reported impact of the war on the Israeli economy itself, and subsequent downgrades by financial ratings agencies, investing in Israeli Government Bonds amongst other directly impacted financial products only increases the Council’s exposure to financial risk.
Merton Council must act now. We call for a clear and time-bound commitment to:
- Divest the LGPS fund from all companies and investments complicit in Israel’s occupation, breaches of international law, and human rights abuses against Palestinians.
- Update its Responsible Investment Beliefs to ensure it is ethical, includes human rights abuses, and aligns with UK international legal obligations.
- Ensure that all investments align with environmental and ethical standards.
- To instruct the London Collective Investment Vehicle (CIV) to divest pension funds from companies and bodies tied to Israel, using their governance role.
- Follow best practice from councils such as Waltham Forest.
This is a matter of urgency. Merton Council has the opportunity to lead in ethical investment and climate action, ensuring that pension funds reflect the values of justice, sustainability, and responsibility.