Obeying a 2016 state legislation that declared loyalty to Israel — and opposition to those that would sanction it for the occupation of Palestine — Colorado’s pension fund on Friday initiated divorce proceedings from the ice cream firm Ben and Jerry’s.
Roughly eight months in the past, Ben and Jerry’s introduced it might be pulling its frozen treats from cabinets within the occupied West Financial institution. This triggered motion in Colorado as a result of the 2016 legislation requires that the Colorado Public Workers’ Retirement Affiliation (PERA), which manages a $61 billion public pension fund, divest from any firm with financial prohibitions in opposition to the state of Israel.
The legislation applies solely to worldwide firms, and solely when these firms have displayed express political motivations associated to enterprise with Israel.
In a press release final summer time, Ben and Jerry’s made its politics clear.
“We consider it’s inconsistent with our values for Ben & Jerry’s ice cream to be offered within the Occupied Palestinian Territory (OPT),” the assertion learn, including, “We’re a values-led firm with a protracted historical past of advocating for human rights, and financial and social justice. We consider it’s inconsistent with our values for our product to be current inside an internationally recognised unlawful occupation.”
Ben and Jerry’s is American, however it’s a subsidiary of London-based Unilever, so it’s topic to Colorado’s legislation. As of Friday, the fund had $42 million invested in Unilever, officers stated.
PERA’s governing board voted unanimously Friday morning to proceed with the divestment of $42 million.
“Lengthy story quick, Ben and Jerry’s has made feedback which are politically motivated, for leaving Israel,” Amy McGarrity, chief funding officer for PERA, informed the board forward of the vote. “What which means is there’s a moratorium … on buying Unilever all through our direct holdings.”
It’s taken many months to get so far, and the transfer gained’t be full for some time longer.
Now that the board has voted, McGarrity stated, “We’ll interact with the corporate for the following 180 days, and if we nonetheless proceed to consider they’re topic to divestment, then we’ll divest inside 12 months.”
That is the primary actual take a look at of the 2016 legislation, which so far has by no means triggered any divestment. It’s uncommon that Colorado’s state legislature would wade into worldwide affairs on this approach, however its pro-Israel divestment coverage is the product of an ongoing nationwide motion and never of unique thought right here; 35 states have insurance policies like Colorado’s that stand with Israel and in opposition to boycotts, divestments and sanctions of the nation, in keeping with the Jewish Digital Library.
Although this course of could find yourself taking shut to 2 years earlier than the Unilever divestment is official, PERA can and does transfer quicker on such issues when it’s compelled to. Simply final month, the fund introduced it might pull $7.2 million from a Russian state-owned financial institution by Might, pursuant to a federal dictate ensuing from Russia’s assault on Ukraine.
The legislature has expressed curiosity in doing extra to sanction Russia. State Sen. Chris Hansen, a Denver Democrat and state funds official, informed Avisionews that he’s requested info from PERA about any ties the fund has to firms that proceed to do enterprise in Russia.
He stated he’s exploring a number of potential actions on that entrance, and indicated that in a possible Russia divestment invoice, he’d wish to require a a lot shorter timeline for motion than has utilized to the Unilever transfer.
“We have to take a look at choices for a way the state of Colorado is doing companies with firms which are nonetheless supporting the Putin regime,” he stated.
