Berkshire Pension Fund will only divest as a 'last resort' amid campaigner pressure

A revised Berkshire Pension Fund policy has made clear it ‘does not make investment decisions based solely on political or moral grounds’ – amid ongoing pressure from campaigners.

The Berkshire Pension Fund is managed by the Royal Borough and administers the Local Government Pension Scheme.

It is responsible for managing the pensions of thousands of council employees across Berkshire.

The fund has come under scrutiny in recent months, with members of the East Berkshire Palestine Solidarity Campaign asking public questions and staging protests to encourage members to divest from companies that supply arms or military technology to Israel.

In a Slough Borough Council meeting on July 24, campaigners asked councillors to stop making ‘immoral investments’.

During the meeting, Councillor Wal Chahal, Slough council’s deputy leader, said a task group is carrying out a review of the Responsible Investment Policy (RI).

He added the task group will ‘ensure pension funds are invested into the right ethical places’.

After three task group meetings, a Royal Borough meeting of the Berkshire Pension Board took place yesterday (Thursday) to discuss the revised RI policy.

A draft was presented to members but there were no changes proposed to the core RI priorities.

However, a number of amendments have been made to ‘clarify how the fund will approach and manage its responsibilities to consider environmental, social and corporate governance (ESG) factors’.

The draft said that divestment may be pursued as a ‘last resort’ but ‘only if there is no material financial detriment to the fund’, and if members of the fund are considered to be supportive.

It added: “The fund favours constructive engagement over divestment, using its shareholder rights to influence corporate behaviour where appropriate.”

A new section focusing on responding to public concern has been added, partly in response to the East Berkshire Palestine Solidarity Campaign protests.

It says: “The fund does not make investment decisions based solely on political or moral grounds.

“Instead, we assess issues in line with legal obligations market standards and our duty to provide pensions.”

It added: “Our policy seeks to balance social responsibility with financial stewardship in a way that is measured, proportionate, and legally robust.”

The draft also includes an increased focus on the impact of climate change on the fund.

It says: “The fund recognises the imperative to manage climate change as it poses material risks across all asset classes.”

Speaking to the Local Democracy Reporting Service after the Royal Borough meeting, Sue Sibany-King, a representative of the East Berkshire Palestine Solidarity Campaign campaign said ‘we are just banging our heads against a brick wall’.

She said: “All we have been hearing for the last 18 months is that finance is more important than human life.

“[The board] is not willing to suffer any financial loss.

“Berkshire Pension Fund are just holding on to something but ultimately they are going to have to divest because it is going to be financially impactful in the wrong way by a pariah rogue state.”

Members recommended the revised RI policy for approval to the Berkshire Pension Fund committee.

The committee will meet on September 15 at the Town Hall in Maidenhead to make a final decision on the revised Responsible Investment Policy.