European Financial Institutions Complicit in Israeli Settlements’ Growth, Report Reveals

Occupied Palestinian Territory - A New Report Exposes the Truth

A recent report by “Don’t Buy into Occupation” (DBIO), a coalition of 24 European and Palestinian organizations, has exposed the extensive financial ties between hundreds of European banks, asset managers, insurance companies, and pension funds with companies involved in activities that raise particular human rights concerns. The report highlights the role of these companies in sustaining illegal Israeli residential, agricultural, and industrial settlements in the Occupied Palestinian Territory.

Financial Institutions Supporting Illegal Settlements

The DBIO report shows that more than 700 European financial institutions hold stocks and bonds worth USD 115 billion in 50 companies involved in settlement construction, service provision, demolition of Palestinian homes, and surveillance of Palestinians. Additionally, these institutions are providing USD 171 billion in lending and underwriting to such companies.

• These institutions have a critical role in supporting activities that violate international law, as they provide the necessary funding for the construction and maintenance of settlements.
• The report emphasizes that financial institutions must conduct enhanced human rights due diligence and take time-bound and effective action to address these violations.

Settler Violence Against Palestinian Communities

Settler violence against Palestinian communities has been on the rise, with attacks involving physical violence, intimidation, shooting with live ammunition, torching of fields and livestock. The DBIO report highlights the need for financial institutions to conduct enhanced human rights due diligence and take time-bound and effective action to address these violations.

• The report commends a few honourable exceptions among European financial institutions, such as Dutch pension fund ABP, Norwegian asset manager Storebrand, and Norway’s largest pension company KLP, which have excluded companies active in places where they risk contributing to war crimes.
• DBIO coordinator Willem Staes emphasized that “by lending to or investing in these companies, financial institutions are linking themselves to activities that violate international law.”
• Palestinian rights group PIPD member Inès Abdel Razek added that “settlements are a fundamental component of Israel’s apartheid regime over the Palestinian people, and by lending direct or indirect support to this settler colonial enterprise, businesses are complicit in taking over Palestinian land, pillaging natural resources, and forcibly expelling Palestinians from their homes.”

Call for Action

The report calls on financial institutions to:

• Conduct enhanced human rights due diligence
• Take time-bound and effective action on findings of impact assessments
• Exercise leverage on companies involved with settlements
• Responsibly terminate financial relationships with companies unwilling to align with international law and human rights

A recording of the launch event for the report can be found here and on Facebook live. The full DBIO 2022 report is available for download at dontbuyintooccupation.org.