Financial Crime World

US$ 12.19 Billion: Major Investors Fuel Israeli Settlements Despite Human Rights Concerns

Introduction

A recent report has shed light on the significant investment of four major financial institutions in HeidelbergCement, a German-based building materials company with operations in the Occupied Palestinian Territories (OPT). The report highlights the alarming amount of US$ 12.19 billion invested by BPCE Group, Janus Henderson, Crédit Agricole, and Government Pension Fund Global (Norway) in the company.

HeidelbergCement’s Operations in the OPT

HeidelbergCement has been accused of contributing to grave human rights violations against Palestinians who have been systematically deprived access to their land and natural resources due to quarrying operations. Despite this, the company claims to have a commitment to human rights and related norms and guidelines.

Human Rights Concerns

The report emphasizes the risk that business enterprises involved in the Israeli settlement enterprise - including through financing, insuring, and trading with partners, suppliers, and subsidiaries - run a high risk of involvement in:

  • Grave violations of international humanitarian law
  • Complicity in war crimes and crimes against humanity
  • Contributing to human rights violations

UN Office of the High Commissioner for Human Rights (OHCHR) Stance

According to the OHCHR, it is difficult to imagine a scenario in which a company could engage in activities in settlements without violating international law.

Recommendations

The report urges financial institutions to:

  • Conduct enhanced human rights due diligence
  • Take time-bound action on findings that may facilitate or contribute to human rights violations

It also recommends that business enterprises involved in the Israeli settlement enterprise should:

  • Responsibly cease all activities and relationships with illegal settlements
  • Respect applicable provisions of international law
  • Introduce reparations and remedial processes for those affected
  • Ensure strong and enhanced human rights due diligence procedures within their supply chain

Previous Divestment Efforts

In recent years, several financial institutions have taken up their responsibility by divesting from business enterprises linked to Israeli settlements. The Norwegian Government Pension Fund Global, for example, has excluded companies involved in activities related to settlements from its investment portfolio.

Call to Action

The report concludes that it is essential for:

  • Financial institutions
  • Business enterprises
  • European governments and institutions
  • Local authorities across Europe to take immediate action to address the human rights concerns raised by their involvement in the Israeli settlement enterprise.