Norway's sovereign wealth fund cuts ties with companies linked to West Bank settlements

The world's biggest wealth fund says the settlements breach international law

A Palestinian man is detained by undercover and uniformed Israeli security force members as Israelis mark 'Jerusalem Day', near Damascus Gate, just outside Jerusalem's Old City. Reuters

Israelis gather at the Western Wall as a blaze is seen in the background at the Al Aqsa Mosque compound in Jerusalem's Old City. Reuters

A Palestinian man, left, argues with Israeli Knesset member and head of the far-right Otzma Yehudit party Itamar Ben-Gvir, in the Sheikh Jarrah neighbourhood of East Jerusalem. AFP

Israeli security forces in the Al Aqsa Mosque compound, in Jerusalem's Old City. A planned march by Israelis marking 'Jerusalem Day' has increased tensions with Palestinians. AFP

Palestinians evacuate a wounded man during clashes with Israeli security forces at the Al Aqsa Mosque compound. Palestinian medics said at least 180 Palestinians have been were hurt in violence there, including 80 who were hospitalised. AP Photo

A man waves an Israeli flag during a parade marking 'Jerusalem Day', amid high Israeli-Palestinian tension, in Jerusalem. Reuters

A Palestinian woman runs close to Israeli security force members during violence at the Damascus Gate, just outside Jerusalem's Old City. Reuters

Israelis run to shelters as air raid sirens go off during a 'Jerusalem Day' march, in Jerusalem. Explosions were heard in Jerusalem after air raid sirens sounded. AP Photo

Norway's $1.3 trillion sovereign wealth fund excluded Shapir Engineering and Mivne Real Estate for activities associated with Israeli settlements on the West Bank.

The companies were excluded based on advice from the Council on Ethics because of unacceptable risk that the companies contribute to systematic violations of individuals' rights in situations or war or conflict", the fund said in a statement.

The world’s biggest wealth fund, which owns about 1.5 per cent of listed stocks globally, is managed according to a wide range of ethical guidelines and excludes some companies from its investment universe based on advice from the council.

The Council on Ethics said in a separate statement “that the Israeli settlements in the West Bank have been built in violation of international law and that their existence and constant expansion causes significant harm and disadvantage to the area’s Palestinian population”.

Norges Bank Investment Management also decided to exclude Honeys Holdings based on a recommendation from the ethics council after it considered workers’ rights at two factories that the Japanese company owns in Myanmar.

The fund announces exclusions after it has divested the actual holdings. At the end of 2020, it held $1 million in stocks in Shapir Engineering and Industry and $12 million in Mivne. It had $2 million in women’s clothes maker Honeys Holdings. As the recommendations were made before the end of 2020, NBIM may have started divesting its holdings last year.