We annually screen and assess companies linked to the occupation of Palestinian territories (OPT). This process is a continuation of enhanced human rights due diligence that we have conducted on this issue since 2009. Based on these ongoing processes, we have been engaging and divesting from many companies.
Storebrand does not have any direct lending activities or underwritings. However, we do carry out continuous human rights' due diligence of all our portfolios, mainly based on our standards on international human rights and humanitarian law, but also on ESG risk data (including country risk, industry risk and company risk ratings) in alignment with UN Guiding Principles for Business and Human Rights, the OECD Guidelines for Responsible Business Conduct for Institutional Investors and human rights due diligence requirements from the Norwegian Transparency Act.
We conduct enhanced human rights' due diligence, including a thorough annual analysis based on data from data providers and our own research to identify human rights risk regarding this specific issue in our portfolios. Once identified, we address and mitigate the risk by engaging, and as last resort, excluding companies from our portfolios.
All activities, services and goods can potentially contribute to the occupation and to sustaining the illegal settlements. However, some of these contribute more to sustaining the illegal situation than others. Our approach is to focus on those with a higher risk of contribution (as explained below for the first and second categories), to engage with these companies. Where it is not possible to influence them, we exclude them. Therefore, since 2009 we have used our own criteria to assess to what extent companies contribute to the regime resulting from Israel's 50+ years of occupation. The criteria cover companies that:
- may be providing surveillance and identification equipment at checkpoints and therefore enabling the regime resulting from the occupation (most severe contribution)
- contribute to construction, maintenance and expansion of settlements and exploitation of natural resources, including infrastructure and direct financing (second-most severe contribution)
- buy goods or services from companies that have operations in Israeli-occupied territories.
Companies falling within the first and second most severe categories are candidates for engagement and potential exclusion, if engagement fails.
As of 31st December 2023, the full list of companies excluded related to OPT includes:
- Alstom
- Ashtrom Group
- Bank Hapoalim
- Bank Leumi
- Bezeq
- Cemex
- Danya Cebus Ltd.
- Delek Group Ltd.
- Elbit Systems
- Elco ltd
- Electra Ltd.
- Enlight Renewable
- First International Bank of Israel
- General Electric
- Heidelberg Materials (formerly HeidelbergCement AG)
- Israel Chemicals
- Israel Discount Bank
- Mizrahi Tefahot Bank
- Motorola Solutions
- Orbia
- Paz Oil
- Shapir Engineering & Industry Ltd.
- Shikun and Binui Ltd.
At the end of 2023, we initiated another annual of process of screening, engaging and excluding companies on this issue. We plan to publish the results of that assessment during Q1 and Q2 of 2024.
First International Bank of Israel (FIBI)
Excluded for involvement in Occupied Palestinian Territories (OPT)
Storebrand first addressed the issue of direct financing of Israeli settlements in occupied Palestinian territories in 2014, which resulted in the exclusion of three banks. Although First International Bank of Israel (FIBI) was flagged at the time, it was not part of Storebrand’s investment universe and thus not excluded at the time. However, the allegations are similar to those against the three banks excluded in 2014.
FIBI is an Israel-based full-service bank, with a wide customer base ranging from corporate clients to medium and small businesses and end-consumers. Its services include retail, capital market, investment consultancy, corporate, commercial and private banking services. The bank directly finances construction and infrastructure for the Israeli settlements, by granting loans to construction and infrastructure companies as well as the local settlement authorities. FIBI also offers loans to Israeli businesses in the settlements and has been involved in the financing of the Jerusalem light rail connecting large Israeli settlement blocs in occupied East Jerusalem with the western part of the city.
Through its direct financial activities, the company directly contributes and makes possible the establishment, expansion and maintenance of illegal Israeli settlements in occupied Palestinian territories and thus further Israel's illegal acquisition of territories. The establishment of Israeli settlements in the West Bank is illegal under international law. Storebrand has not succeeded in establishing a dialogue with the company.
Rheinmetall AG
Newly placed on observation list for involvement in controversial weapons
The German-based automotive and weapons manufacturer Rheinmetall AG was flagged under our controversial weapons screening, based on our exclusion criteria regarding involvement in the production of white phosphorus weapons. Although the company has a policy not to produce or distribute phosphorus weapons which applies also to its subsidiary companies, it however recently acquired a company that produces such items, which triggered the alert.
Storebrand has engaged with the company regarding the above concerns, and has received confirmation that the recently acquired company, Expal Systems, is to phase out the production and distribution of this product in the first half of 2024, in line with Rheinmetall AG’s policy. The company has been therefore placed on our observation list, in which trading up in the company is frozen until the subsidiary phases out the production and distribution of this product.
We continue to follow up on the company, in the event that it does not carry out the actions that it explained, we will take a decision on exclusion of the company.
Rheinmetall, is the largest German military equipment supplier and the fifth largest in Europe. The company reported revenues of EUR 6,410 million in the 2022 financial year.
