In a move that highlights the ongoing controversy surrounding Ben & Jerry’s boycott of Israel, North Carolina has become the latest state to divest its public employee pension from the ice cream company’s corporate parent, Unilever. This decision follows similar actions taken by states such as Arizona, Florida, Illinois, New Jersey, New York, and Texas.
The North Carolina Retirement Systems, responsible for providing retirement benefits to over 1 million members, including teachers, firefighters, police officers, and government employees, has withdrawn $40 million from Ben & Jerry’s and its affiliates. State Treasurer Dale Folwell, a Republican, explained that they do not pick and choose which laws to apply, emphasizing the need to follow the 2017 legislation that prohibits investment in companies engaged in a boycott of Israel.
Ben & Jerry’s, known for its left-leaning advocacy, has maintained an independent board of directors to continue its activism even after being acquired by Unilever. Folwell acknowledged the unexpected challenges arising from allowing the ice cream brand to have its own board, stating that Unilever did not anticipate such issues. Despite attempts to engage with Unilever before making the decision to divest, the state treasurer’s office was unsuccessful in finding a resolution.
It is important to note that the divestment decision was not influenced by recent international events, such as the Hamas attack in October 2023. However, Folwell emphasized that antisemitism has no place in North Carolina and that it is crucial to be clear on this matter.
Ben & Jerry’s decision to stop selling its products to Israelis in the West Bank, announced in July 2021, has been a point of contention. Although Unilever sold the Ben & Jerry’s ice cream operations in Israel in June 2022, the independent board’s stance on Israel remained unchanged. Unilever, in a press release, stated its rejection of discrimination and intolerance, including antisemitism, and reiterated its non-support for the Boycott Divestment Sanctions (BDS) movement.
This ongoing controversy highlights the complexity of corporate activism and its impact on states’ investment decisions. As more states take action against Ben & Jerry’s, the debate surrounding the Israeli boycott continues to evolve.
