Wiltshire Pension Fund faces pressure to divest from defence companies

Any decision would need backing from scheme members

More than 90,000 members of Wiltshire Pension Fund could be consulted on whether their £3.8bn pot should cease investing in arms companies, though not until next year.

Campaigner Alex Hall called on councillors to hold a formal vote on withdrawing investment from weapons manufacturers and to bring forward a planned survey of pension scheme members.

In a response considered by the Wiltshire Pension Fund Committee last week, officers said any decision to divest from aerospace and defence companies would need backing from scheme members.

A fund-wide survey is currently scheduled for early 2027.

Mr Hall argued that a number of local authorities and pension funds elsewhere in the UK had already moved towards divesting from arms companies or firms with links to Israel.

He also drew parallels with Wiltshire Pension Fund’s existing policy of scaling back exposure to fossil fuel investments, contending that the same principles ought to be applied to defence companies.

His submission argued that the distinction between so-called “controversial weapons”, which are already excluded under the fund’s policies, and conventional weapons becomes blurred when conventional weapons are used against civilian populations.

He referenced the conflict in Gaza, arguing that the fund should reconsider its holdings in companies connected to the arms trade.

Officers noted that the committee had already carried out a detailed review of the fund’s exposure to aerospace and defence companies in November 2025.

They said that any future ruling would need to consider fiduciary duties, legal and regulatory obligations, financial implications, practical implementation challenges and the views of both pension scheme members and employers.

Meanwhile, the committee’s responsible investment reports revealed the fund’s continued progress on climate-related investment policies.

Officers confirmed that the fund’s listed equity portfolios had been decarbonised by 57 per cent against a 2019 baseline, while a target to direct 30 per cent of assets towards sustainable investments had already been met.

The reports further confirmed that work on divesting from fossil fuel companies remains an integral part of the fund’s broader climate strategy, underlining the stark contrast between the fund’s established stance on fossil fuels and the ongoing debate surrounding investments in the defence sector.

Wiltshire Pension Fund is the Local Government Pension Scheme administered by Wiltshire Council, serving more than 90,000 active workers, former employees and retirees.

Its 162 participating employers encompass Wiltshire Council, town and parish councils, schools and colleges, along with a variety of other public sector and community organisations.