"Exposing the financial flows into illegal Israeli settlements", 5. December 2022

Foreword by Fernanda Hopenhaym, Member UN Working Group on Business and Human Rights

[...] In conclusion, the UNWG has been very clear about the responsibilities of institutional investors and home States of those institutions, particularly when it comes to conflict-affected regions. The present report reveals key information on the impact of investments that are not fully aligned to the UNGPs, including not conducting heightened human rights due diligence as recommended by the UNWG.

[...]

Main Findings

• New research by a cross-regional coalition of Palestinian and European organisations shows that, between January 2019 and August 2022, 725 European financial institutions, including banks, asset managers, insurance companies, and pension funds, had financial relationships with 50 businesses that are actively involved with Israeli settlements.
• During the analysed period, USD 171.4 billion was provided in the form of loans and underwritings. As of August 2022, European investors also held USD 115.5 billion in shares and bonds of these companies. [...]
• All 50 companies are involved in one or more of the “listed activities that raise particular human rights concerns”, which constitute the basis for inclusion in the UN database of business enterprises that are involved in Israeli settlements, which was published in February 2020.
• The Top 10 creditors (loans and underwritings) alone provided USD 124.32 billion to one or more of these 50 companies:
  1. BNP Paribas (France): USD 25.09 billion
  2. HSBC (United Kingdom): USD 15.04 billion
  3. Société Générale (France): USD 14.27 billion
  4. Deutsche Bank (Germany): USD 14.07 billion
  5. Barclays (United Kingdom): USD 12.29 billion
  6. KfW (Germany): USD 11.15 billion
  7. Santander (Spain): USD 9.46 billion
  8. Crédit Agricole (France): USD 9.09 billion
  9. UniCredit (Italy): USD 6.95 billion
  10. ING Group (Netherlands): USD 6.91 billion
• The Top 10 investors (shareholdings and bond holdings) alone invested USD 60.42 billion in one or more of these 50 companies:
  1. Government Pension Fund Global (Norway): USD 13.90 billion
  2. Crédit Agricole (France): USD 12.25 billion
  3. Groupe BPCE (France): USD 6.68 billion
  4. Deutsche Bank (Germany): USD 6.38 billion
  5. Legal & General (United Kingdom): USD 5.52 billion
  6. Allianz (Germany): USD 4.00 billion
  7. DZ Bank (Germany): USD 3.02 billion
  8. BNP Paribas (France): USD 3.01 billion
  9. AB Industrivärden (Sweden): USD 2.89 billion

[...]

In accordance with the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines, business enterprises that through their activities and relationships may facilitate and contribute to human rights violations, have a responsibility to conduct enhanced due diligence to prevent or mitigate adverse human rights impacts and thus avoid involvement or complicity in breaches of international law. These responsibilities apply also in relation to the supply chain and indirect relationships. [...]

The authors of the report contacted all companies and financial institutions mentioned and gave them the opportunity to review the results and provide input on the findings. Several financial institutions and companies have provided statements. These can be read in full in the annex of the report here.