Hertfordshire County Council has agreed to request a review of its responsible investment policy, after more than 1,500 residents backed a petition calling on the council to divest its pension fund from companies complicit in "war crimes, apartheid and occupation".

In particular, the petition called for the Herts Local Government Pension Scheme to divest from companies "complicit in Israel's well-documented human rights abuses against Palestinians".

And it called on the council to refrain from any such investments in future through the implementation and review of its responsible investment policy.

Presenting the petition, Peter Segal highlighted the pension fund's investment in RTX Corp, described as a US arms firm that supplied missiles "used in the Gaza genocide".

And he pointed to the investment in Booking Holdings, which he said advertised "holiday rentals in illegal Israeli settlements in the occupied West Bank".

He said a reason given for the council's previous "failure to act" was the fiduciary duty to ensure the best returns for the scheme members.

But he said there was no evidence that divestment of only a few per cent of funds would have any significant financial impact – questioning whether the pensions committee had ever costed the likely impact.

He also asked whether the committee had consulted with the Hertfordshire branch of Unison members, who he said had passed a motion demanding action of divestment.

And he said: "The responsible investment policy promises scheme members that human rights will be treated as a key priority.

"Yet the pension fund holds investments that clearly breach this."

As the petition was presented, dozens of protesters – who were for and against the action called for in the petition – were in the chamber.

Opening the debate, pensions committee chair Cllr Tim Williams recognised the situation in Gaza and proposed that the council request that the pensions committee review the council's responsible investment policy "at its earliest opportunity".

"The situation in Gaza is truly tragic," said Cllr Williams.

"We remember in shock the horrendous, barbaric attacks on Oct 7.

"And we are all horrified to see on news bulletins the tragic situation in Gaza, unfolding before our eyes – a man-made human tragedy.

"We all pray and desire for our international leaders to resolve the situation – and now that a ceasefire is in place, we hope that this holds and that lasting peace can be achieved."

Cllr Williams stressed that the "overriding duty" of Hertfordshire's Local Government Pension Plan was to pay the pensions of retired employees and scheme members.

He also highlighted the insistence that investment managers "invest ethically" and that investments "continue to be in line with our financial responsibilities".

Highlighting similar petitions and letters received by other authority pension funds, he said advice had already been sought from the Secretary of State.

And proposing that the council's responsible investment policy be reviewed by the pension committee, he said this response would assist the committee in its deliberations.

Leader of the Conservative group, Cllr Richard Roberts, also recognised the "immense anguish and tragedy" caused by the events of the past two years in Israel and Gaza, to Jewish and Palestinian families.

And he suggested that the petitions, processions and protest reflected the grief and anger at the situation in Gaza and Israel, rather than the behaviour of the county council or its pension committee.

"There are no winners or losers – only an immense tragedy of unspeakable suffering and grief," he said.

"Families in Hertfordshire have lost loved ones in Israel in a conflict that has raged for decades.

"In this chamber, we recognise that Jewish and Palestinian people are scared and angry.

"There is uncertainty at what happens next – but there must be an end to bloodshed, an end to the anguish of parents where families have been torn apart.

"That is why we have petitions, processions and protest – not because of the behaviour of Hertfordshire County Council or its pension committee – but because there is grief and anger at the situation in Gaza and Israel."

Cllr Roberts said it was right that the pensions committee considered "a whole range of external factors" when making its strategic investment decisions – suggesting wider publication of the committee's annual report.

He pointed to the committee's independent ethical responsibility in its careful, thoughtful curation of an investment portfolio, on behalf of current and future pensioners.

But signalling he would vote against the review of the policy, he said it would undermine decades of independence that the pension scheme had maintained.

Meanwhile, Reform Cllr Matthew Hurst told the chamber: "The Reform group firmly opposes and utterly rejects the petition, not out of disregard for human rights but out of respect for the facts and the proper role of council."

Signalling that the motion would be backed by Green Party councillors, Cllr Rachel Carter acknowledged that the pension committee has a responsibility to make sure funds were properly invested and safeguarded.

But she backed the calls for the investment policy to be reviewed by the pensions committee.

"The pension fund has no obligation to invest in countries which are involved in human rights abuses," she told the meeting. "There is always a choice. 

"The county council must review its responsible investment policy to be clear that it does not support such investments, now or in the future."

Meanwhile, Labour Cllr Ian Albert suggested that the council may not have challenged itself enough on their investments in relation to human rights.

And he suggested it was something they needed to do further work on.

In advance of the vote, the leader of the Liberal Democrat group, Cllr Steve Jarvis, stressed that while the motion would suggest to the pensions committee they might wish to look at the responsible investment policy, it did not prejudge the conclusion that they might reach.

Following a vote of the full council, the motion calling on the pensions committee to review its responsible investment policy was carried by just one vote, with 37 councillors voting for and 36 against.