Newham Council has committed to a transparent audit of its pension fund investments to identify and divest from companies involved in human rights violations. The decision was made during a full council meeting on Monday, July 13, 2026.
The motion, proposed by Councillor Mehmood Mirza and seconded by Councillor Ibrahim Alom, calls for an examination of investments, with a particular focus on companies implicated in the arms trade and those violating international law in the Occupied Palestinian Territory. It also resolves to divest from companies complicit in human rights abuses, war crimes, or illegal settlements.
Defining 'Human Rights Violations' and 'International Law'
The audit will use specific criteria to define 'human rights violations,' 'arms trade,' and 'international law.' The motion notes grave violation of international law and human rights
and specifically mentions companies complicit in supplying weapons and technology used around the world, including in Israel's military assaults on Palestinians.
It also references a UN Commission of Inquiry report that found that Israel has committed genocide against Palestinians in the Gaza Strip
and an ICJ Advisory Opinion stating Israel's military occupation of the Gaza Strip and West Bank including East Jerusalem is illegal and must end.
The motion further calls for divestment from companies involved in the arms trade, complicit in human rights abuses, war crimes, or illegal settlements.
Audit Timeline and Divestment Roadmap
The council has requested a formal report to be presented to the next available Pensions Committee and Cabinet. This report will outline a full disclosure of all directly managed funds and those managed by London CIV, a roadmap for ethical divestment, legal, financial, and logistical considerations, and a timeline for implementation. The specific timeline for the audit and subsequent divestment process will be detailed in this forthcoming report.
Ensuring Audit Independence
To ensure the independence and thoroughness of the audit, the council resolves to conduct a full and transparent audit of all Newham Pension Fund investments, with a specific focus on identifying: Holdings in arms companies, Companies complicit in violations of international law in the Occupied Palestinian Territory as defined by the United Nations Human Rights Office.
Balancing Ethics and Fiduciary Duty
Councillor John Gray, in proposing an amendment that was not accepted, highlighted the council's fundamental responsibility to our 30,000 Newham workers who are scheme members, already pensioners, and their families
and the need to protect our pensioners
and ensure no harm to existing and future council pensioners and their families' pensions.
He stressed that this is not the council's money. It belongs to our workers.
Councillor Mirza, in moving the original motion, clarified that the council is not asking for reckless action
but explicitly recognizes its judiciary duty to protect the pensions of current and future pensioners.
He added, Many public pension funds already consider ethical investment alongside financial preferences. Responsible investment and prudent investment is not mutually exclusive, they go hand in hand.
London CIV's Role
The motion calls on London CIV (the pooled pension investment vehicle for London boroughs) to ensure Newham Council can select investment options that exclude companies complicit in grave violations of international law. Furthermore, it urges London CIV to adopt a fully legal, ethical and responsible investment policy and to meaningfully implement it by immediately divesting from companies involved in human rights violations in the Occupied Palestinian Territory and elsewhere.
Potential Financial Implications
The forthcoming report will include an examination of the Legal, financial and logistical considerations
for divestment. While the motion prioritises ethical considerations, the council acknowledges the need to protect pensioners' interests and ensure strong returns, with the understanding that responsible investment and financial prudence are not mutually exclusive.
Current Suspected Investments
The motion notes that Local Government Pension Scheme (LGPS) funds invest [billions of pounds] in companies complicit in crimes against humanity and violations of international humanitarian law (IHL).
It specifically mentions companies complicit in supplying weapons and technology used around the world, including in Israel's military assaults on Palestinians.
The motion also calls for divestment from companies involved in the arms trade, complicit in human rights abuses, war crimes, or illegal settlements.
Councillor Mirza stated, This is not simply about finances, it's about values, it's about whether the London borough of Newham is prepared to match its words on human rights and meaningful action.
He added that the motion asks for transparency, an independent audit, disclosure, and a clear roadmap, ensuring that public money reflects the values the council claims to uphold.
Councillor Alom, seconding the motion, emphasized that profit and ethics are not mutually exclusive, and neither are morality and good governance.
He highlighted that the pension fund belongs to the borough's workers, who deserve secure pensions and strong returns, and confidence that their money reflects their values.
The council also resolved to explore and adopt a revised investment strategy that prioritises sustainability, ethical governance, and respect for international law.
The motion passed unanimously.
Supplementary Agenda - Response to questions 13th-Jul-2026 19.00 Council
