Gaza and the Occupied Territories
We can’t ignore the devastation across Gaza and the Occupied Territories if we want to achieve a permanent peace for Palestinians and Israelis.
Liberal Democrat MPs have called for the publication of government legal advice relating to Gaza and argued that ministers cannot turn a "blind eye" to the humanitarian crisis
Wimbledon’s Liberal Democrat MP, Paul Kohler, was among Liberal Democrat MPs who wrote to the Foreign Secretary in June 2025 calling for immediate recognition of Palestine as a state. Liberal Democrats are committed to a two-state solution as the only viable path to lasting peace and security for both Israelis and Palestinians.
Full details of Paul's work on the conflict in the Middle East are available on his website and are updated regularly.
Council pension investments, human rights and transparency
Many residents have contacted us about the Council’s pension fund investments linked to Gaza, Israeli settlements, and companies identified as problematic by UN or human rights reports. These are important concerns, and we believe residents deserve clear information about how investment decisions are made.
How local government pension investments work
The Merton Pension Fund is part of the London Collective Investment Vehicle (LCIV), which manages investments on behalf of London borough pension funds.
Local government pension funds operate within a legal framework that prioritises the long-term financial interests of scheme members and the security of their pensions.
Investment decisions based solely on a company's connection to a particular country, or because it appears on a general campaign or monitoring list, could be open to challenge if they were not supported by the fund's fiduciary duties and investment policies.
Instead, decisions must be made through an investment process that considers evidence about individual companies, their activities, and the risks they present.
Responsible investment and human rights
LCIV's approach is based on active stewardship. This means fund managers monitor companies, engage directly with them on issues such as human rights and corporate conduct, and use shareholder voting rights to challenge behaviour where concerns arise.
Where serious concerns persist, investment managers may recommend reducing or selling investments following detailed assessment. However, this is undertaken on a case-by-case basis rather than through blanket exclusion lists.
Human rights are one of LCIV's stated responsible investment priorities, and investment managers are expected to consider these risks when making decisions. You can see more about their approach to Israel and the Occupied Palestinian territories here.
Because company ownership structures, activities and investment holdings change over time, it is not possible to guarantee that pension funds will have zero exposure to every company identified in external reports or databases at all times. The focus instead is on ongoing monitoring, engagement and action where appropriate.
What Merton Liberal Democrats have been doing
Merton Liberal Democrats recognise that residents want greater transparency and accountability over pension investments.
Our councillors have:
· Pressed for greater transparency about which companies the pension fund is exposed to.
· Raised formal questions about pension investments and responsible investment policies.
· Produced public information explaining how these decisions are made.
· Called for clearer reporting so residents can see how exposure to particular investments changes over time.
We believe residents should be able to understand where pension fund money is invested and what action is being taken when concerns are identified.
Our position
We understand that many residents would like to see the Council take stronger action on investments linked to human rights concerns.
There is important work taking place through both LCIV and the Merton Pension Fund to:
· Monitor companies linked to human rights concerns.
· Challenge corporate behaviour through engagement and shareholder voting.
· Improve transparency around pension fund investments.
· Ensure environmental, social and governance (ESG) considerations are taken into account alongside financial responsibilities.
Merton Liberal Democrats will continue to support greater transparency and stronger responsible investment practices within the legal framework that governs local government pension funds.