Thousands call for halt to South Yorkshire pension fund investment in Israel and arms firms

The petition was presented to the annual meeting of South Yorkshire Pension Authority (June 5) by South Yorkshire Pension Divest for Palestine. The pension authority manages pensions for 180,000 South Yorkshire current and retired local authority workers.

The petition states that South Yorkshire residents and members of the pension scheme are concerned that the authority “is investing our money in Israeli government bonds and companies that are currently helping to sustain or profit from Israel’s illegal occupation of Palestine, and the ongoing genocide and forced displacement of the Palestine people.”

It calls for the authority to develop an ethical investment policy that specifically seeks to divest from companies engaged in arms manufacture, those complicit in human rights abuses in Palestine​ or on the UN’s list of businesses operating in the illegal settlements in the Occupied Palestine Territory, and to divest from Israeli government bonds.

Sue Owen from the campaign said people signing “have been shocked that the pension scheme invests in arms companies, especially arms companies that send arms to Israel”.

“It’s especially shocking to find that South Yorkshire Pensions’ investment in arms companies has almost doubled in the last 18 months and investment in Israeli [government] bonds only started in 2024, while Israel was being investigated for genocide by the ICJ [International Court of Justice].

Genocide

“Every human rights organisation has concluded that genocide is being committed in front of the eyes of the world.”

She added: “Managers of pension funds will always stress fiduciary duty but you as councillors are politicians and you have to make political decisions and you have to make one today, right now. Will you remain silent or will you do what’s in your power and make a stand against genocide?”

Dr Sahar Awadallah, who asked a question on behalf of someone unable to attend, said she is a British Palestinian doctor who has worked and lived in Sheffield for 18 years.

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“As someone committed to preserving and restoring life, I cannot remain silent while public money invested in companies is being used to further the destruction of lives in Gaza, including my family as well,” she said.

Dr Awadallah asked: “Can you make a difference by withdrawing finance from companies that enable these atrocities? Will you do this?

“The people of South Yorkshire don’t want to be complicit – will you listen and revise your investment policies?”

Obligations

Campaign member Mohammed Ashraf, chair of Rotherham Friends of Palestine, spoke about legal obligations and rights for pension funds to consider the ethical aspects of their investments. He asked for a fiduciary risk assessment to take place, including consideration of the reputational risk to the fund of continuing the disputed investments.

He pointed out that the scheme is currently 160% funded and divestment could take place without affecting its value or ability to pay pensioners. He raised the issue of conflict with the fund’s responsible investment policy.

Head of service George Graham responded for the authority: “It’s important to say that everyone sitting around this table is a human being. No-one could fail to be moved by the tragedy in Gaza.

“The solution to the tragedy will come about through politics and diplomacy and not strictly through the pension funds which exist for the sole purpose of paying pensions to scheme members when they fall due and we are not an instrument of foreign policy.”

Mr Graham said that the views of pensioners who signed the petition carry some weight in influencing decision-making but the views of other residents do not.

He said that a survey of scheme members had been carried out to determine what they think about the whole range of non-financial issues related to the scheme.

Challenge

Mr Graham said that the authority is limited to expressing its views to other partners in the Border to Coast pension scheme partnership, which makes investments on behalf of a pool of 11 local authority pension schemes.

Otherwise, the authority would have to decide to unilaterally withdraw from the partnership. That would rightly leave it open to legal challenge as a disproportionate action that would probably succeed, he believed.

He said that the authority in December will discuss taking a different stance to companies where engagement to convince them to change their policies has demonstrably failed. He said the fund already makes positive investments, such as in companies making an impact on climate change and financial support for smaller-sized businesses and housing in South Yorkshire.

Mr Graham said that the scheme can only have a responsible investment policy holding companies to certain standards, not an ethical one as this is only possible in a faith-based organisation.

Coun Alexi Dimond, a Green Party member of Sheffield City Council, said: “We as an authority haven’t discussed this response and therefore I want to dissociate myself from this.”

Ms Owen told councillors: “This really isn’t good enough. You need to do something and you can.”

Damage

Coun Dimond said following the meeting: “I expressed my concern about the damage being done to SYPA’s reputation due to investments made on its behalf by Border to Coast pensions pool.

“Investments in Israeli government bonds are both morally, legally and financially unjustifiable. And in my view, divestment from arms companies would be entirely morally, legally and financially justifiable and in line with a Responsible Investment policy and the fiduciary duty as they make up just 1% of the fund’s assets, at a time where the authority’s funding level is around 159%.

“I also believe that the authority (and all local government pension schemes and pension pools) should abide by the Rome Statute and act to prevent genocide. That the UK government itself is not upholding international law does not mean we are required to do the same.”