Agenda item - Strengthening Ethical Procurement and Investment Policies to Reaffirm Oxford City Council's Commitment to Human Rights and International Law (proposed by Cllr Barbara Coyne, Seconded by Cllr Dr Hosnieh Djafari-Marbini)

Strengthening Ethical Procurement and Investment Policies to Reaffirm Oxford City Council's Commitment to Human Rights and International Law (proposed by Cllr Barbara Coyne, Seconded by Cllr Dr Hosnieh Djafari-Marbini)

Meeting of Council, Monday 24 March 2025 5.00 pm (Item 16a)

Oxford Community Independent Group Motion

Council notes:

• Oxford City Council’s commitment to human rights, equality and justice is longstanding.^{^[1]} We have democratically embedded ethical policies and practices across our administration.^{^[2]} We are committed to representing every resident in our international city, challenging inequalities,^{^[3]} and upholding the fundamental rights and freedoms of all.

• Our leader has noted “the historic role of ethical boycotts, which have played a pivotal role in campaigns for justice” and “Oxford’s prominent role in the anti-apartheid movement”, which culminated in Nelson Mandela’s 1997 visit.^{^[4]}

• Over the past year, successive International Court of Justice (ICJ) rulings have underlined UN member states’ obligation to actively avoid complicity in Israel’s illegal occupation of Palestine and grave violations of human rights,^{^[5]} with UN experts warning that continued inaction “jeopardises the entire edifice of international law”.^{^[6]}

• Under international law, the legal norms that apply to a state extend to local authorities.^{^[7]}

• Council acted swiftly in response to Russia’s violations of international law.^{^[8]}

Council believes that:

• We have an ethical duty and legal obligation to avoid trade and investment relations and cooperation with entities that recognise, aid or assist violations of international law.^{^[9]}

• The Oxfordshire Pension Fund—to which Council employees and city residents contribute—should adhere to similarly robust ethical standards, in line with its fiduciary duty towards scheme members and employers.^{^[10]}

Council resolves to:

• Request that the cabinet member for finance and asset management strengthen our investment and procurement policies to incorporate, wherever possible and in line with applicable legislation, the UN Principles for Responsible Investment (UN PRI) and Guiding Principles on Business and Human Rights (UNGP); and explicitly preclude Council knowingly, indirectly or directly, investing in or trading with entities implicated in:

- the production of weapons, weapon parts, or military equipment;

- fossil fuel extraction, processing, or trade;

- state violence and repression, war and occupation and/or grave violations of human rights as defined in international law (including war crimes, crimes against humanity, and genocide).^{^[11]}

• Request that the leader write a letter urging the Oxfordshire Pension Fund Committee to work with Brunel^{^[12]} to:

- extend existing investment exclusions^{^[13]} and restrictions^{^[14]} to encompass the above-listed activities, anywhere in the world;

- divest from current investee entities known to be involved in illegal occupation and grave violations of human rights;^{^[15]} and

- commit to ensuring that all investee entities adopt and rigorously implement the UNGP, in addition to the UN Global Compact.

• Commit to retendering our banking contract (including accounts for our wholly owned companies) as soon as possible.^{^[16]}

• Request that the cabinet member for business, culture and an inclusive economy issue and actively disseminate a statement encouraging local businesses and institutions to follow Council’s example in developing robust ethical trade and investment policies and practices, aligned with international law and standards.^{^[17]}

• Where no contrary legal requirement exists, forgo cooperation with authorities, institutions or groups that participate in, enable, profit from or legitimise violations of human rights and international law.

• Ensure that Council implements the above policies and that these are operated and effective, once adopted.^{^[18]}

[1] We are proud of our Local Authority of Sanctuary accreditation; our twinship with Ramallah, Palestine, which honours an enduring friendship; and our commitments toward economic and climate justice. We became the first UK local authority to pledge to divest from fossil fuels in 2014 and the first to hold a Citizen's Assembly on Climate Change following our climate emergency declaration in 2019.

[2] Our Treasury Management Strategy incorporates an Environmental, Social and Governance (ESG) Policy (including an ethical position approved by Council in 2014), which our Financial Services team has applied in selecting our current short-term investments. The strategy notes this ESG policy is to be “refined over time as more consistent metrics are developed,” but represents “an important step in raising the consideration of ESG matters, informing investment decisions and offering appropriate challenge where there is room for improvement.” Our Procurement Strategy also commits to upholding human rights and International Labour Organisation core conventions.

[3] As evidenced in our Thriving Communities Strategy 2023-2027.

[4] “Oxford City Council takes stand against the Anti-Boycott Bill” (March 2024). Also available here.

[5] On 19 July 2024, the International Court of Justice (ICJ) affirmed that:

- Israel’s occupation of the Palestine is illegal and must end as rapidly as possible;

- Israel is violating fundamental principles of international law (including the Palestinian people’s right to self-determination, the prohibition of racial discrimination and apartheid, and the prohibition of the unlawful use of force); and

- UN member states are under an obligation to take steps to prevent trade or investment relations that assist in the maintenance of Israel’s illegal occupation.

In its order of 26 January 2024, the ICJ concluded it was plausible that, “irreparable prejudice will be caused” to the “right of Palestinians in the Gaza Strip to be protected from acts of genocide” before a final decision in South Africa’s genocide case against Israel could be issued. This was followed by additional ICJ orders indicating provisional measures against Israel in March and May 2024. The UK is legally bound to act to prevent genocide from occurring. See the following expert legal opinions in this regard: Obligations of Third States and Corporations to Prevent and Punish Genocide in Gaza (Al-Haq Europe and SOMO, 2024); Legal Consequences for third States of Israel’s potential breaches of the Genocide Convention in the light of the ICJ’s Provisional Measures Orders (Arab Organisation for Human Rights in the UK, 2024).

[6] “UN experts warn international order on a knife’s edge, urge States to comply with ICJ Advisory Opinion” (18 September 2024). UN experts recall that the extreme destruction wrought by Israeli forces in Gaza, and increasingly throughout occupied Palestine, has prompted allegations of domicide, urbicide, scholasticide, medicide andecocide.

[7] See, for instance, HRC General comment No. 31: “The Nature of the General Legal Obligation Imposed on States Parties to the Covenant” (2004), para. 4 and “Harmonized guidelines on reporting under the international human rights treaties, including guidelines on a common core document and treaty-specific targeted documents,” HRI/MC/2005/3 (2005), para. 50. The UN Office of the High Commissioner of Human Rights and Human Rights Council have repeatedly emphasised local governments’ critical role in protecting and promoting universal human rights. For a recent example, see https://docs.un.org/en/A/HRC/57/L.6

[8] Our leader ended Oxford’s twinning agreement with Perm less than two weeks after Russia’s invasion of Ukraine on 24 February 2022, unequivocally condemning Russian breaches of international law.

[9] This duty does not conflict with the Procurement Act 2023, which is now in force. Local authorities may exclude tenderers on grounds that insufficient regard for human rights obligations and responsibilities in areas of the world where a company conducts business constitutes ‘professional misconduct which brings into question the supplier’s integrity’ for the purpose of the Act, according to a recent legal opinion obtained by Amnesty International.

[10] Oxfordshire Pension Fund’s Responsible Investment (RI) Policy states that the fund “believes that responsible investment forms an integral part of its fiduciary duty due to the potential material financial implications that flow from it” and “retains the right to disinvest from or exclude certain companies or sectors if approaches to addressing its concerns prove unsuccessful and it is determined that an investment is no longer aligned with the interests of the fund or poses a material risk”. The fund’s RI policy further affirms that the protection of human rights is an issue of paramount importance for fund members, citing a 2023 member survey on responsible investment; and that risks associated with breaches of human rights figure among the top 10 global risks identified by the World Economic Forum (WEF).

[11] Genocide, crimes against humanity, war crimes and other serious violations of international law are defined in Articles 6 through 8 of the Rome Statute, which was incorporated into UK law through the International Criminal Court Act 2001. These articles include the crimes of apartheid, colonisation and severe damage to the natural environment. Complicit companies can be identified, inter alia, using the following databases:AFSC’s Investigate database, the Who Profits Research Center database, the OHCHR database of business enterprises involved in illegal settlement activities and People & Planet’s Border Divestment List.

[12] Brunel Pension Partnership is Oxford’s Local Government Pension Scheme (LGPS) pool. Oxfordshire Pension Fund’s RI Policy “enable[s] the fund to clearly identify priority RI areas to Brunel and, in turn, help inform the ongoing development of their RI approach”.

[13] Oxfordshire Pension Fund already operates specific activity-based exclusions for tar-sands (also known as oil-sands) extraction; thermal coal extraction; and the manufacture of controversial weapons where there is a risk of severe, systemic, and structural violations of international human rights norms.

[14] Oxfordshire Pension Fund swiftly acted to end Russian investments following Russia’s invasion of Ukraine in 2022.

[15] The fund continues to hold substantial investments in companies complicit in illegal occupation and violations of international law, including arms companies supplying Israel with weapons and military technology; companies providing infrastructure for Israel’s unlawful military occupation of Palestinian land; companies conducting business activity in Israel’s illegal settlements on stolen Palestinian land; and companies providing financing to companies that are involved in said activities. These investments, across 6 funds, total an approximate market value of £157,598,739.46. Companies have been identified using AFSC's Investigate database and the Who Profits Research Center database.

[16] Council’s current banking provider, Barclays, remains the number one fossil fuel funder in Europe, raising tens of billions in finance for oil and gas companies; and has provided investment, loans and other financial services to companies providing weapons, components and military technology used by Israel in its attacks on Palestinians and their land. Taking into account the limited financial services options available to local authorities at present, this motion commits to undertaking a new procurement process incorporating robust ethical criteria.

[17] Including the UN Global Compact, the UNGP and the UN PRI.

[18] In particular, we ask Financial Services to ensure that the activities listed in the first resolve are included in ESG indicators relating to Treasury counterparties, to engage with multi asset and money market fund managers on an ongoing basis to avoid indirect investment exposure and to reinvest where funds’ compliance with strengthened policies are incomplete or unclear. We further ask Procurement to integrate ethical considerations into the procurement process and exclude companies involved in the activities listed in the first resolve. Finally, we ask Scrutiny and Audit and Governance to regularly monitor the operation and effectiveness of strengthened ethical investment and procurement policies.