NY pension fund puts Unilever on notice for Ben & Jerry's sales ban

The main pension fund for New York’s state government workers and retirees warned Ben & Jerry’s parent company, Unilever, on Friday that it might restrict its investments in the company because of the ice cream maker’s decision to halt sales in Israeli-occupied territories.

In a letter obtained by The Post, Liz Gordon, executive director of corporate governance for the $254.8 billion New York State Common Retirement Fund, informed Unilever CEO Alan Jope that state Comptroller Thomas DiNapoli “is troubled and concerned” by Ben & Jerry’s announcement.

Gordon noted that the state pension fund has a policy of restricting investments in companies involved in the anti-Israel boycott, divestment, and sanctions (BDS) movement, and reports suggest that “Ben & Jerry’s, a Unilever wholly owned subsidiary, is involved in BDS activities.”

“The Fund views BDS activities as a potential threat to Israel, its economy, and, as a result, the Fund’s relevant investments,” she wrote. “Further, a number of U.S. states have acted or are considering actions to penalize companies that engage in such behavior.

“As a result, companies that engage in BDS activities may face legal, reputational and financial risks.”

Gordon gave Jope 90 days to respond to the letter and “confirm or deny whether Unilever or its subsidiaries have undertaken any activities with the intent to penalize, inflict economic harm on, or limit commercial relations with, the State of Israel.”

She added that if the company fails to respond, London-based Unilever will be “subject to a detailed review and staff recommendation, which may include investment restrictions.”

According to the New York State Common Retirement Fund’s most recent annual report, it has about $73 million invested in Unilever.

Representatives for Unilever did not return The Post’s request for comment.

The letter comes just days after the Vermont-based ice cream company announced that it will let its partnership agreement with its Israel-based licensee lapse at the end of the year.

“We believe it is inconsistent with our values for Ben & Jerry’s ice cream to be sold in the Occupied Palestinian Territory (OPT),” the company said in a statement.

The term Occupied Palestinian Territories has been used for years to describe the areas occupied by Israel since 1967, namely the West Bank, including East Jerusalem, and the Gaza Strip, according to the European Council on Foreign Relations.

Ben & Jerry’s clarified that it’s not pulling out of Israel, where it will continue to sell ice cream “through a different arrangement.”

The move drew backlash not just from New York state, but several others with anti-boycott laws as well.

Florida state CFO Jimmy Patronis, who controls public pension funds for the state, sent his own letter to Ben & Jerry’s CEO Matthew McCarthy on Thursday.

He notified the company that its announcement “may result in your business being placed on Florida’s Scrutinized Companies that Boycott Israel List pursuant to Florida Statutes.”

“As you may know, Florida law prohibits the state from investing in companies that discriminate against Israel by refusing to deal with or terminate business activities in a discriminatory matter,” said.

He added that if the company is added to the state’s list, both Ben & Jerry’s and Unilever would be barred from entering into or renewing contracts with the state.

In total, there are 35 US states that have signed similar laws aimed at preventing states from funding companies that boycott Israel, according to Israel’s ambassador to the US Gilad Erdan.

Earlier this week, Erdan sent a letter to the governors of those states calling on them to take action against Unilever for Ben & Jerry’s announcement.