London council to divest $3.4m from companies complicit in West Bank settlements

Islington Council in London has announced its commitment to divest from companies involved in illegal settlement activity in the occupied West Bank following months of local campaigning.

The council pledged last week to divest £2.6 million ($3.35 million) from its pension fund, which had been invested in companies complicit in the ongoing Israeli occupation of Palestinian territories.

Moreover, Islington Council has committed to revising its procurement policies, including reviewing its banking systems with Barclays bank, which activists claim “is bankrolling Israel’s genocidal assault on Palestinians”.

In a statement to MEMO, the council said: “Islington Council takes Environmental, Social and Governance (ESG) matters very seriously and has discussed these with Barclays, including in a meeting with Barclays Bank Chief Executive. The council will review its banking services contract in 2025. We will incorporate robust criteria around ESG when the council’s banking services contract is reviewed.”

The Islington Palestine Solidarity Campaign (PSC) welcomed the news but insisted that more action is needed. With Israel’s ongoing war on Gaza, campaigners are calling on the council to disclose and divest from any arms companies linked to human rights violations.

“We welcome this decision, but we believe more can be done and we need your help,” PSC wrote in a post on Instagram. “With the ongoing genocide in Gaza, the council must disclose and divest from arms companies.”

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Additionally, the PSC is urging the council to disclose the pension fund’s investments in companies that are involved in or profit from human rights violations, including those related to prolonged military occupations, apartheid and genocide. They are calling for divestment from all such companies and bonds, and demand a clear timescale for this process, along with quarterly progress reports to ensure transparency and accountability.

Barclays has faced renewed criticism from rights activists recently. A report released earlier this year found that Barclays now holds over £2 billion ($2.58 billion) in shares in companies whose weapons, components and military technology have been used against Palestinians by Israel. Barclays also provides over £6.1 billion ($7.86 billion) in loans and underwriting to these arms and military technology companies, including holdings of £2.7 million ($3.48 million) in Israel’s main arms manufacturer, Elbit Systems.

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