The Dutch pension fund PME, with assets totaling $68 billion, has divested from investments in several companies linked to activities in the occupied Palestinian territories, after classifying these holdings as potentially connected to human rights violations.
اضافة اعلان
A spokesperson for the fund said the decision came after “a comprehensive review and months of consultations,” noting that the affected companies include U.S. online travel company Booking Holdings, cement company Cemex SAB de CV, and telecommunications equipment firm Motorola Solutions.
The spokesperson added that upcoming peace talks in Egypt “will not change the fund’s position.”
Economic Pressure on Israel
PME indicated that the total value of the divested holdings, including shares and bonds, amounted to €151 million ($177 million) as of the end of June.
These divestments reflect growing concern among asset owners and managers that their investments may contribute to the continuation of Israeli settlement construction in the West Bank and the ongoing war in Gaza.
The PME spokesperson noted that the fund applies “strict negative screening” to companies operating in high-risk or conflict-affected areas. The Dutch pension fund ABP, Europe’s largest, also sold its stake in Caterpillar, according to a disclosure on June 30. Local media previously reported similar divestments by other Dutch pension funds.
Cemex SAB de CV said it “does not operate in the occupied Palestinian territories” and is “committed to managing operations in accordance with international law and the highest ethical standards.” Caterpillar, Booking, and Motorola did not comment.
Similar Moves by Norway’s Sovereign Wealth Fund
In August, Norway’s $2 trillion sovereign wealth fund placed Caterpillar on its exclusion list due to the use of its bulldozers by Israel to demolish Palestinian property in Gaza and the West Bank, a decision that drew sharp criticism from the U.S. Republican Party, including threats of retaliatory measures. Despite political reactions, some asset managers remain concerned about the financial and human rights risks of maintaining such investments.
Tulia Machado Hieland, Head of Human Rights at Storebrand Asset Management, which manages a $120 billion portfolio, said her team is analyzing 37 companies for potential exclusion, including major U.S. tech firms. “If you operate in a conflict zone, you need to assess how your products or services might exacerbate the conflict,” she noted.
Sam Jones, President of the U.S.-based nonprofit Heartland Initiative, which advises asset managers overseeing $1.5 trillion, said the organization is receiving increasing inquiries from managers concerned about developments in the West Bank and Gaza. “There’s a lot of work happening behind the scenes. Investors are worried about rising human rights risks and material financial risks,” he added.
Israel’s War in Gaza
Since the start of the war in Gaza in 2023, Israel has expanded its occupation of Palestinian territories. An independent UN committee declared on September 16 that Israel committed “genocide” in Gaza, following a 2024 ruling by the International Court of Justice that Israel’s occupation of the West Bank, Gaza, and East Jerusalem is illegal.
The Israeli government rejected these findings, with Prime Minister Benjamin Netanyahu stating that his goal is to “destroy Hamas,” which both the U.S. and EU classify as a terrorist organization.
Despite these developments, Israeli stocks and the shekel continued to gain. The TA-35 index, which tracks the largest Israeli companies listed on the Tel Aviv Stock Exchange, rose over 30% since the start of the year, while the shekel appreciated roughly 10% against the U.S. dollar.
The UN reported 158 companies operating in West Bank settlements as high-risk in terms of human rights violations, including construction and demolition equipment firms, and is considering adding 381 more companies to the list.
These lists are increasingly influential among investors, especially as other analytical sources decline to report on such risks. Jones from Heartland Initiative noted that “ESG data providers widely avoid issues related to human rights and conflicts.”
Marcella Pinella, Sustainable Investment Director at Zevin Asset Management in Boston, emphasized that monitoring such risks is part of asset managers’ “fiduciary duty.”
Other asset managers who divested from companies exposed to the West Bank and Gaza include the Norwegian pension fund KLP. Kiran Aziz, responsible for responsible investments at KLP, said she received inquiries from over twenty senior asset managers seeking advice on investments in the occupied territories.
At the same time, financial institutions face increasing legal risks if they do not reduce their exposure.
In June, BNP Paribas SA became the target of a lawsuit filed by the French nonprofit “Lawyers for Respect of International Law,” accusing the bank of violating French “duty of vigilance” laws by failing to disclose activities supporting Israeli settlements. A bank spokesperson said BNP Paribas “fully complies with the law and has no connection to conflicts in the Middle East,” adding that the bank regrets the organization chose litigation over dialogue.
(Source: Agencies)
