Kingston upon Thames Council's Pension Fund Panel is set to review its responsible investment policy, with a particular focus on potential divestment from companies on the UN list of those allegedly complicit in human rights violations. The decision follows a public petition and a debate during the panel's meeting on Wednesday, September 17, 2025.
The panel will consider whether its current preference for engagement with companies is the most effective approach, or if divestment should be prioritised. The current policy prioritizes engagement over divestment, but the panel is considering whether this approach remains the most suitable. The review will also explore expanding engagement priorities, including the order of Environmental, Social, and Governance (ESG) factors.
Councillor James Giles addressed the panel, stating that the recommendations were insufficient and failed to honour the mandate of the cross-party motion passed by the full council. He argued that engagement is not a substitute for divestment and urged the panel to adopt a framework in line with global best practice, such as the Norwegian sovereign wealth fund's divestment model.
Councillor Mark Beynon acknowledged the public interest in the matter, particularly concerning the situation in Israel and Gaza. He noted the complexity of determining responsibility and the challenges of complete divestment. Councillor Beynon emphasised the importance of a robust responsible investment strategy and working with the London CIV to exert influence.
The panel agreed to several key actions:
- Note the report summarizing the findings of the task and finish group, including the current exposure held within the fund. The panel agreed to note the report summarizing the findings of the task and finish group1, including the current exposure held within the fund.
- Review the responsible investment policy for the fund, in particular whether the current preference for engagement over divestment is still the most appropriate approach, and consider expanding on the engagement priorities for the fund, including the order of ESG priorities, reporting the outcome of the review and any resultant updates to the pension panel meeting in February 2026.
- Note the four identified investments on the United Nations Office for the High Commission of Human Rights list and seek to understand whether these companies' corporate responsibility policies are and whether these companies have taken action to change their own behaviours and activity in relation to the violations of international law in Palestine. The panel will seek to understand whether these companies' corporate responsibility policies are adequate and whether these companies have taken action to change their own behaviours and activity in relation to the violations of international law in Palestine.
- Agree to consider options to divest from and actively not investing companies on the UN OHCHR list, noting at the current time that only Motorola investment is held outside of a pooled fund arrangement where the entire holding and that pooled fund would need to be sold in order to divest from a particular company which would likely be cost prohibitive.
- Agree to publish an annual stewardship report to provide further details of how the fund's responsible investment policy is implemented in practice, with the first report to be presented to the 11th of February 2026 pensions panel meeting.
- Agree to report back to the next appropriate Corporate Resources Committee with the outcome of the review and the steps being taken by the fund as a result. The panel agreed to report back to the next appropriate Corporate Resources Committee with the outcome of the review and the steps being taken by the fund as a result.
The panel also noted four identified investments on the United Nations Office for the High Commission of Human Rights list. The meeting transcript does not explicitly name the four companies, but the report summarizing the findings of the task and finish group includes the current exposure held within the fund. They will seek to understand these companies' corporate responsibility policies and actions regarding international law violations in Palestine.
The London CIV representative explained that they monitor lists of companies with potential exposure in the region, assess their activities, and engage with them to push for increased transparency and human rights due diligence. They also mentioned using votes to push for change and considering human rights screens.
Sue Curden, Executive Director of Corporate Services, cautioned against divesting from individual companies without considering the significant financial impact on the fund, as investments are primarily in pooled funds. She suggested strengthening the wording of the responsible investment policy.
Councillor Richard Thorpe stated that the panel had recommended divesting in one direct investment immediately and then looking more widely at the funds.
The first stewardship report is expected to be presented at the pensions panel meeting on February 11, 2026. The outcome of the review and subsequent steps will be reported to the next Corporate Resources Committee.
