Barking and Dagenham's Pension Committee is considering divesting from investments that support the conflict in the Occupied Palestinian Territories, following concerns raised by the Palestine Solidarity Campaign (PSC) and local residents. The PSC has alleged that such investments create legal liabilities for administering authorities under UK law.

The issue was discussed at the Pensions Committee meeting on Wednesday, 17 December 2025, as part of a broader review of the fund's Responsible Investment Policy. The committee is weighing its fiduciary responsibilities against environmental, social, and governance (ESG) factors, including exposure to conflict zones and potential human rights breaches.

The council has received emails expressing concern over the fund investing in Israeli companies. According to the Public reports pack, the fund has two global equity managers: Kempen, which excludes controversial armaments and tobacco stocks and has no exposure to Israeli companies, and UBS, which has a £600,000 exposure to Israeli companies through their Life Fund.

Additionally, through the London CIV (LCIV), the Baillie Gifford Global Growth Paris Aligned Fund has a £600,000 investment in Mobileye, an Israeli-founded company now owned by Intel. The LCIV has engaged with Mobileye's senior management to understand the impact of the conflict on the company, personnel, and operations. In 2024, Baillie Gifford discussed the consequences of staff absence due to reserve-duty call ups on the company's ability to continue to innovate in a competitive industry. BG came away from the engagement with the sense that Mobileye's management team is navigating this difficult situation appropriately, and they continue to monitor the situation as it develops.

The LCIV is asking for the position of funds on the Responsible Investment matrix they have developed, which essentially places the varied approaches of 32 partner funds into three options:

  • Pillar One: Controversial weapons and non-conventional fossil fuel extraction exclusions.
  • Pillar Two: Restrictions from Stream One plus controversial areas and companies breaching global norms and human rights standards.
  • Pillar Three: Restrictions from Stream Two plus weapons and companies officially listed by the UN as breaching human rights/international law in conflict zones.

The committee is expected to discuss consulting on a Human Rights violation overlay for its equity allocations and authorising the Strategic Director to write to the Chief Executive of the LCIV setting out the fund's requirements on mandates as they transfer to LCIV funds. The committee will consult on a Human Rights violation overlay for its equity allocations through the Investment Strategy Statement (ISS) process. The aim is to report the Strategic Asset Allocation work to the March meeting of the Committee.

The Responsible Investment covering report notes that the council has received emails expressing concern over the fund investing in Israeli companies. The fund has two global equity managers. As previously reported Kempen have a policy of excluding controversial armaments and tobacco stocks. They have no exposure to Israeli companies. UBS through their Life Fund have an exposure of £600,000 to Israeli companies. The Life Fund structure cannot implement any disinvestment overlays for individual investors. Discussions have started with UBS about a different structure which would allow overlays, for example on Human Rights.

According to the Public reports pack, in making further changes to its RI policies the Committee has to be mindful of recent Counsel's advice (Updated legal opinion on fiduciary duty in the LGPS January 2025) which makes it clear that in taking investment decisions these must be in accordance with its Investment Strategy Statement (ISS) and accord with the views of its members. As part of the triennial valuation work the Fund will need to consult with its members and will use the response to this consultation to help inform its revised ISS. All future investment decisions will then be taken in accordance with this ISS and associated policies.

The Palestine Solidarity Campaign (PSC) wrote to all LGPS administering authorities, alleging that investments in certain companies support the conflict in the Occupied Palestinian Territories and create legal liabilities for administering authorities under UK law. The Responsible Investment covering report states, In August the Palestine Solidarity Campaign (PSC) wrote to all LGPS administering authorities with a legal view from Doughty Chambers...concluded that 'administering authorities will expose themselves to legal risk if they continue to invest in companies which are aiding or assisting in Israel's serial and serious violations of the most fundamental norms of international law in the OPT'.