URL: https://democracy.broxtowe.gov.uk/ieDecisionDetails.aspx?ID=2313

Decision Maker: Cabinet

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose: Members to note the tensions in the Middle East, with reported breaches of international law and the worsening humanitarian situation and genocide in Palestine and to propose that the Council makes representations to the the Nottinghamshire County Council Pension Fund Committee and the Local Pension Board to immediately divest any funds from companies complicit in Israel’s crimes against Palestinians and to review the relevant Council strategies in consideration of these matters. This is in accordance with all the Council's key priorities

Content: Members noted the tensions in the Middle East, with reported breaches of international law and the worsening humanitarian situation in Palestine.   It was proposed that the Leader of the Council makes representations to the Nottinghamshire Local Government Pension Fund to express concerns regarding potential investment exposures to environmental, social and governance (ESG) and human rights matters and request that the administering authority review such investments in accordance with its own statutory fiduciary duties to divest any funds from companies complicit in Israel's crimes against Palestinians.   It was further considered as to whether to review the Council's Treasury Management Strategy and Procurement Strategy and to do this through the appropriate constitutional decision-making route where any amendment to the Policy Framework documents is required.   RESOLVED to approve to:   1.         Express concern and urge representatives on the Nottinghamshire County Council Pension Fund Committee and the Local Pension Board to request that they divest any funds from companies complicit in Israel’s crimes against Palestinians. This includes companies producing weapons and military technology used by Israel in its attacks on Palestinians; financial institutions providing investment and loans to these arms companies; and companies conducting business activity in the occupied Palestinian territories which benefit the occupier, to ensure that any funds invested are consistent with their fiduciary duties and responsible investment policies. 2.         Request that the Leader of the Council meets with the Chair of the Nottinghamshire Pension Fund Committee and LGPS Central Limited senior leadership, to convey Cabinet’s concerns and urge them to: a.    Extend investment exclusions and restrictions to the prescribed activities and implement an escalation-to-exclusion protocol where engagement fails, consistent with the recommendations of the UN Special Rapporteur on the situation of human rights in the Palestinian territories to end financial flows to the ‘economy of concern’. b.    Request that managers (LGPS Central Limited and other external parties) divest, in an orderly and financially prudent manner, from entities known to be involved in illegal occupation, with transparent timelines, milestones, and reporting. c.    Publish an annual pool-level human-rights risk report identifying exposures to illegal occupation, with engagement outcomes and any divestments. d.    Codify a timebound escalation-to-exclusion pathway for severe international-law breaches, with annual public reporting of exposures, engagements, and divestments. 3.         Commit to consult with the Council’s trade unions and employees with pensions held with the Nottinghamshire Pension Fund on their views on the investment of their pension contributions potentially including arms companies and present the results of the consultation to the Nottinghamshire Pension Fund. 4.         Commit that the Deputy Leader and Portfolio Holder for Resources and Personnel Policy will bring forward to the relevant Committee, as soon as practically possible, a review of the Treasury Management Strategy and the Procurement Strategy to incorporate, wherever possible and in line with applicable legislation, the UN Principles for Responsible Investment (UN PRI) and the UN Guiding Principles on Business and Human Rights (UNGP) for the selection of suppliers, investments, financial institutions, and counterparties. 5.         Continue to monitor that the provider of the Council’s banking services and other financial institutions included as part of treasury management activity continue to be compliant with defined environmental, social and governance (ESG) criteria.   Reason   The Nottinghamshire Pension Fund should not be investing in companies that facilitate Israel's reported breaches of international law.

Date of Decision: March 10, 2026