Lewisham Pension Fund to Screen Companies for War Crimes and Human Rights Violations
The Lewisham Pension Fund is set to screen companies and sovereign issuers involved in war crimes, crimes against humanity, genocide, or serious violations of human rights. This significant policy update follows a decision by the Lewisham Pensions Committee to review and potentially amend the Fund's Responsible Investment Beliefs Statement.
The committee's move is a direct response to recent international conflicts and sanctions, particularly those related to Israeli settlements in occupied Palestinian territories. A substantial portion of responses from a member survey conducted in December also highlighted concerns about human rights issues, prompting the call for further action.
Under the proposed updates, the fund will screen and exclude exposure to entities where there is credible evidence of material involvement in conduct that:
- Contributes to, facilitates, or enables acts including war crimes, crimes against humanity, genocide, or other serious violations of international humanitarian law, such as apartheid.
- Violates rights protected under the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and core International Labour Organization conventions.
- Contributes to the exploitation of people, land, natural resources, or markets in territories under occupation.
The criteria for defining 'credible evidence' of involvement in such violations are outlined within these proposed updates. While the distinction between direct involvement and indirect contribution is not explicitly detailed, the wording contributes to, facilitates, or enables
suggests a broad scope that could encompass indirect involvement.
As at 31 March 2026, approximately 60% of the Fund was invested in growth assets, 25% in income assets, and 15% in protection assets, including passive bonds and cash. The Fund's asset allocation at that time involved nine active managers with six mandates. While the exact proportion of investments that might be affected by the new screening criteria is not yet specified, the fund has identified current investments in companies like Palantir, with approximately £1.5 million invested, which has partnered with the Israeli Defense Ministry. Additionally, investments are held with the Israeli Discount Bank, which has financed construction in illegal Israeli settlements.
Officers have been tasked with conducting further work, which includes obtaining specialist legal and London CIV advice, as well as undertaking necessary assessments and consultations. The Chair will work directly with officers on this matter, with formal progress reports to be presented to the committee at each meeting. This suggests an ongoing process of review and assessment, though specific mechanisms for continuous monitoring and re-evaluation are not yet detailed.
The review and potential implementation of any changes are expected to take several months, with a timeline of three to six months anticipated. Throughout this process, the Fund's fiduciary duty to act in the best financial interests of its beneficiaries remains paramount. Any proposed amendments will be carefully considered against this duty, as well as LGPS investment regulations, statutory guidance, and pooling requirements.
This initiative aligns with a growing trend among pension funds to integrate ethical considerations and human rights principles into their investment strategies, while continuing to pursue strong financial returns for their members.
For more details on the committee's proceedings, refer to the Public reports pack 15th Oct 2026 Pensions Committee and the Minutes Public Pack 11 June 2026 Pension Committee.