Waltham Forest Council to pull investments from firms linked to arms trade

Many public bodies and private companies hold pension funds in firms that some consider to be unethical in some way. These include tobacco, gambling and alcohol firms, as well as arms.

Justin Wray, of the Pension and Lifetime Savings Association, said: “Pension schemes have a significant interest in ensuring that the companies they invest in operate to high standards. Funds of all types will typically apply screening along environmental, social and governance (ESG) principles relevant to the types of investment strategy they offer.”

“Where they are not happy with the actions of the company they may take the decision to divest,” he explained.

However, he added that, following Russia’s invasion of Ukraine in 2022, there had been “renewed debate about the ethics of investing in arms manufacturers”.

In April, the former Conservative government issued a joint statement, external with the Investment Authority, which said: “Investing in defence companies contributes to our national security, defends the civil liberties we all enjoy, while delivering long-term returns for pensions funds and retail investors.

“Investing in good, high-quality, well-run defence companies is compatible with ESG considerations as long-term sustainable investment is about helping all sectors and all companies in the economy succeed.”