Pension Committee moving forward with divestment from arms trade

The Waltham Forest Pension Fund has confirmed it can divest from companies linked to the arms trade, a landmark moment reaffirming its position as a leader in responsible investment after years of determined and methodical work.

Following a detailed analysis of its current portfolio, the Fund confirmed its ability to divest without any material detrimental impact on its financial position at a Pension Committee meeting on Wednesday 25 March. This breakthrough delivers on the commitment made in 2024 to pursue divestment in a financially responsible way.

The transition will begin as soon as suitable alternative investments become available through the London Collective Investment Vehicle (CIV), the government-established investment pool that manages pension funds for London local authorities.

This marks a significant milestone for the Fund. After years of sustained effort and careful stewardship by the Committee, the financial analysis provides the assurance needed to proceed with divestment from arms-related investments in a responsible and sustainable manner.

The Committee is legally required to ensure that all decisions do not have a material financial impact on the Fund’s approximately 35,000 members. Since 2024, it has undertaken meticulous financial analysis to ensure that the transition away from the arms trade is delivered prudently and in the best interests of its members. 

As the first local government fund in the UK to pledge divestment from the arms trade, the decision follows the Waltham Forest Pension Fund’s pioneering total divestment from fossil fuels in September 2022. It was the first local government pension fund in the UK to make that commitment, a blueprint for dozens of local authorities across the country who have pledged to do the same.

In partnership with the London CIV, Waltham Forest Pension Fund has also agreed to adopt a new framework to strengthen its ability to make additional ethical exclusions, including from UN-identified companies linked to human rights abuses, once it has been formed by the London CIV.  As always, all final investment decisions will be guided by an overriding principle that there must be no material, detrimental financial impact on the Fund.

Cllr Johar Khan, Chair of the Waltham Forest Pension Committee, said:

This is a moment of real pride. This next step has taken years of careful work, detailed analysis and a focus on doing the right thing in the right way. Our members expect their pensions to be invested responsibly, and we are proving that it is possible to align our investments with our values without compromising financial strength.

When we make a commitment, we follow through. Our fossil fuel divestment was a complex operation which took over five years to process, but we did it and we did it responsibly. Now, we are on track to achieve arms divestment in less than half that time.

We won’t stop here. We will continue to push for further exclusions to ensure that investment decisions are aligned with globally recognised principles on human rights and humanitarian law. We are building a framework that reflects not just where we are today, but where we believe responsible investment must go in the future.

Our work towards this commitment requires agreement across the London CIV’s local authority partners. It’s a complex process, but as we have before we will continue to lead the way in responsible, ethical investment, as our fund members and residents expect.

We have come a long way, but we are not done yet.