Ireland’s Divestment from Israeli Settlement-Tied Companies: A Closer Look at the Implications and Ongoing Investments
In April 2024, Ireland’s Minister for Finance, Michael McGrath, made waves on the international stage with a landmark decision to divest the State’s investments from six companies with ties to illegal Israeli settlements in Palestinian territories. This move, which followed the recommendations of the Irish Strategic Investment Fund (ISIF), was part of Ireland’s ongoing effort to align its investments with international law.
Before this divestment, Ireland had direct stakes in 11 companies that had financial ties to Israeli settlements. However, by shedding investments in six of these companies, the Irish government reduced its direct holdings to just five. This action, though significant, did not entirely remove Ireland’s financial involvement in activities that support settlements in the occupied Palestinian territories. Despite the divestments, reports suggest that the ISIF may still be indirectly linked to these settlements through investments in other companies.
In fact, Ireland's total exposure to businesses connected to settlements has now increased, with three additional companies identified through indirect investments in hedge funds and similar financial vehicles. The total number of companies associated with Israeli settlements, in which Ireland still has holdings, rose to eight, as outlined in the ISIF’s 2023 annual report. By the end of 2023, the combined value of these investments exceeded €10 million.
The UN Database: A Key Reference for Divestment
The critical document guiding the ISIF’s divestment strategy is a United Nations database that identifies businesses involved in Israeli settlements. Originally compiled in 2020 by the UN Office of the High Commissioner for Human Rights, this list contains 112 companies involved in activities such as building infrastructure for settlements, providing demolition equipment, or facilitating surveillance in these territories. The database is regularly updated, with 15 companies removed in 2023 after demonstrating a cessation of such activities or restructuring to distance themselves from settlement operations.
This UN list has served as the foundation for Ireland’s approach to divesting from settlement-linked companies. However, as Minister McGrath emphasized, the list is incomplete and requires thorough research to ensure that divestment decisions are based on the most up-to-date and comprehensive information.
Key Divestments and Ongoing Investments
The most notable divestments in 2024 included holdings in five major Israeli banks—Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi Tefahot Bank, and First International Bank—as well as an Israeli supermarket chain, Rami Levi Chain Stores Ltd. The total value of these divestments amounted to €2.95 million. Despite this, the ISIF's involvement with other companies remains a source of scrutiny.
Airbnb stands out as a widely recognized name still listed in the UN database for its involvement in promoting illegal settlement properties. The ISIF holds direct investments in Airbnb, despite its controversial listings in occupied territories. The Irish government has faced criticism from groups like Amnesty International, who argue that these platforms normalize illegal settlements by advertising them as legitimate tourist destinations.
Another company of concern is Alstom, the French multinational known for manufacturing rail infrastructure. Through its acquisition of Bombardier Transportation in 2021, Alstom became indirectly linked to the supply of rolling stock for the train line connecting Tel Aviv to Jerusalem, which passes through occupied territories. While the company has since ceased certain activities in the region, it remains listed on the UN database.
Altice International, a telecom giant, is another company the ISIF holds indirect investments in. Its subsidiary, Hot Mobile, provides telecommunications services to Israeli settlers in the West Bank and Golan Heights, contributing to the ongoing infrastructure of settlements.
Controversial Online Platforms: Booking.com, Expedia, and Tripadvisor
The ISIF also has investments in several travel and accommodation platforms, including Booking.com, Expedia, and Tripadvisor, all of which feature listings for properties in illegal Israeli settlements. These companies have been criticized for not clearly labeling these properties as being located in occupied Palestinian territories, leading to accusations that they are indirectly supporting settlement activities by facilitating tourism in these areas. While each company has taken steps to include safety warnings or conflict-related advisories, the absence of clear labeling of settlements as “illegal” has sparked further debate.
Motorola Solutions, a major security and surveillance provider, is another company on the UN’s list. The company’s products, such as surveillance systems and radar detectors, are used extensively in Israeli settlements. Motorola Solutions is accused of supplying security infrastructure that sustains the settlements’ existence, which has led to human rights concerns about the impact of these technologies on Palestinian freedom of movement.
The Financial Implications and Continuing Scrutiny
While the Irish government’s divestment strategy is seen as a significant move, questions remain about the long-term impact of these actions on the ISIF’s portfolio. As of 2024, the total value of investments in companies linked to Israeli settlements stands at over €10 million, prompting further calls for Ireland to review its financial commitments and ensure that all holdings are in line with international law.
Despite these concerns, Finance Minister Paschal Donohoe has assured the public that the ISIF continues to monitor its investments closely. The latest developments, including investments in companies such as Delek Group (linked to the operation of petrol stations in the West Bank) and Expedia (which continues to list properties in settlements), highlight the ongoing complexity of divesting from companies tied to controversial activities.
As the debate continues, Ireland’s actions serve as a focal point for discussions around responsible investment, human rights, and the role of governments in promoting ethical business practices.