Concern that Powys pensions boosted by Gaza slaughter

By Elgan Hearn, Local Democracy Reporter

Powys County Council should pull any funds that have been used to support the slaughter of nearly 50,000 people in Gaza.

At a council meeting tomorrow, a question will be posed to the chairman of the Powys Pensions and Investments Committee, Cllr Peter Lewis, by Michael Brown in the questions from members of the public section.

Mr Brown asks: “Will the council ensure that none of its pension fund investments are at risk of benefiting companies that may be linked to potential war crimes, given the mounting legal evidence of acts of genocide that are being committed against the civilian population of Gaza.

“It is important that the council protects its present and future pensioners from any risk that their funds have knowingly been invested in such activity.”

In response, Cllr Lewis will state: “Concern about the Middle Eastern conflict has been raised and is discussed at Powys Pensions and Investment Committee.

“We hold ourselves to the highest standards of stewardship and are currently reviewing our investment beliefs and strategies that inform our Responsible Investment Policy.”

Cllr Lewis explained that their legal duty is to invest in the “best financial interests” of pension scheme members.

He said that the investment strategy now includes a policy on ESG (Environmental, Social, and Governance) considerations and that they have “prioritised” de-carbonisation.

Cllr Lewis said: “The Middle Eastern conflict is now another significant concern for LGPS (Local Government Pension Scheme) funds.

“Focus on the social element of ESG is increasing, with performance of companies impacting on human rights issues of people and communities in which it engages. Such considerations are factored into investment decisions.”

The Powys fund invests through the Wales Pension Partnership (WPPWPP) in several long-term investment contracts with dozens of asset manager firms.

Cllr Lewis believes that the committee’s “stewardship role” means that it should influence through engagement with companies, and this would be through its asset managers Robeco, who operate as WPP’s voting and engagement partner for all pooled investments.

Cllr Lewis said: “While we don’t invest in Israel as a nation, several companies may be operating there, and Robeco will be engaging with them on behalf of the WPP and the Powys Pension Fund.

“The LAPFF (Local Authority Pension Fund Forum) have been carrying out engagement on behalf of the member funds, liaising with Palestinian and Jewish interest groups in respect of companies operating in the occupied region where member funds have some investment.”

The focus of this, according to Cllr Lewis, is to “encourage” companies operating in the area to “review and have regard” for the human rights of all individuals with whom they interact in the conduct of their operations.

In response to the answer, Mr Brown will be allowed to ask an extra question at the meeting.

The Gaza slaughter started in response to a Hamas attack on Israel on October 7, 2023, when fighters broke through one of the heaviest guarded borders in the world to attack several locations.

But the conflict has been rumbling on for 70 years with it reaching a new depressing low over the past 15 months with the indiscriminate slaughter of civilians by the Israeli Defence Force, who claimed to be targeting Hamas fighters only.