European Financial Institutions Must Prioritize International Law Over Profits
A new report by the “Don’t Buy into Occupation” (DBIO) coalition has shed light on the financial relationships between European businesses involved in Israel’s illegal settlement enterprise and major European financial institutions. The report reveals that 50 business enterprises with ties to Israeli settlements have received investments, loans, or underwriting services from European Financial Institutions (FIs).
The Problem
The DBIO coalition is calling on FIs to prioritize their responsibilities under international law and human rights standards over profits. The group’s report highlights the risks and consequences of financial institutions’ involvement in the settlement enterprise, which has been condemned by the international community as illegal.
International Obligations
The UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises (OECD Guidelines) explicitly state that businesses have a responsibility to respect human rights and avoid causing or contributing to violations. The DBIO coalition argues that European FIs are breaching these obligations by providing financial support to companies involved in Israeli settlements.
The Report’s Findings
The report’s findings are based on an analysis of the financial relationships between business enterprises and European FIs, including loans, underwriting services, and shareholdings. While not all of the investments may flow directly into settlement activities, the DBIO coalition argues that investing in a company connects the investor to all the company’s activities and business relationships, making them complicit in any associated harm.
Urgent Action Required
In light of these findings, the DBIO coalition is urging European FIs to take immediate action to sever their ties with companies involved in Israeli settlements. The group is also calling on national and local authorities to hold financial institutions accountable for their actions and ensure that they comply with international law and human rights standards.
Global Context
The report’s release comes as European governments are increasingly facing pressure to take a stronger stance against Israel’s settlement enterprise. In recent months, several European countries have announced plans to limit or ban imports from Israeli settlements, while others have called for an end to the construction of new settlements.
Conclusion
As the international community continues to grapple with the complexities of business and human rights, the DBIO coalition’s report serves as a stark reminder that financial institutions have a critical role to play in promoting respect for human rights and preventing harm. By prioritizing their obligations under international law over profits, European FIs can help to promote peace and stability in the region while upholding their responsibilities as responsible corporate citizens.
Call to Action
The DBIO coalition is calling on European FIs to:
- Sever ties with companies involved in Israeli settlements
- Prioritize international law and human rights standards over profits
- Comply with national and local laws that promote respect for human rights
By taking immediate action, European FIs can help to prevent harm, promote peace and stability, and uphold their responsibilities as responsible corporate citizens.