The NZ Superannuation Fund has divested from five Israeli banks due to their alleged funding of Israeli illegal settlement in the Occupied Palestinian Territories. The guardians of the Fund stated that “There is credible evidence that the excluded companies provide project finance for the construction of Israeli settlements in the Occupied Palestinian Territories, which is an integral aspect of settlement construction".

The Fund decision was based on its Responsible Investment Framework, which is guided by the UN’s principles for responsible investment, domestic and international law, and the policy positions of the New Zealand government. The decision also referred to the 2016 UN Security Council resolution which demanded the cessation of Israeli settlement activities in the Occupied Palestinian Territories as well as the New Zealand government’s 2020 statement. In June 2020 the NZ government issued the following statement: “New Zealand is a long-standing supporter of Israel’s right to live in peace and security. However, successive New Zealand governments have also been clear that Israeli settlements are in violation of international law and have negative implications for the peace process.”