The French insurance giant Axa has reportedly made a significant move by withdrawing $20 million worth of investments in three Israeli banks that have been accused by the United Nations of supporting illegal Israeli settlements in the occupied West Bank. This decision comes after a global advocacy organization, Eko, claimed that Axa engaged in a deliberate divestment from Bank Hapoalim, Bank Leumi, and Israel Discount Bank, selling off 2.5 million shares totaling $20.4 million between September 30, 2023, and June 24, 2024. This action followed a sustained campaign by pro-Palestine activists.
Eko’s report also revealed that Axa had not reinvested in the First International Bank of Israel or Mizrahi-Tefahot Bank since at least December 31, 2022. These two banks were previously targeted in a 2019 report by Eko, which alleged Axa’s financial complicity in Israeli war crimes. While Axa still had „trace amounts“ of investments in Bank Leumi, Eko considered this a full divestment, attributing the residual amount to reporting and internal accounting that still needed to be completed.
In 2016, the United Nations established a database of companies operating in illegal Israeli settlements and listed all five banks as providing services that support and maintain unlawful settlements in the occupied West Bank. Eko’s report also claimed that Axa had fully divested from the Israeli arms company Elbit Systems in 2019. Elbit Systems, traded on both the Israeli stock exchange and the US Nasdaq, faced criticism for its drones being used in military operations in Gaza.
Japanese trading giant Itochu recently cut ties with Elbit in response to an International Court of Justice ruling that Israel may be committing genocide in Gaza. Daphne Cronin, a senior campaigner at Eko, commended the divestments but emphasized that Axa was still under scrutiny. She highlighted the impact of public pressure in holding financial actors accountable for complicity in Israeli war crimes and expressed a commitment to continue investigating Axa’s investments in arms companies.
Elbit Systems, based in Haifa, produces a significant portion of the drones and land-based equipment used by the Israeli army. These weapons have reportedly been deployed in Gaza, the West Bank, and southern Lebanon. Fiona Ben Chekroun, Europe Coordinator for the Palestinian-led BDS movement, hailed Axa’s divestment as a major milestone for the BDS movement and its allies, emphasizing the effectiveness of BDS pressure in advancing Palestinian human rights.
A spokesperson for Axa declined to comment on Eko’s report but referred to a previous statement by CEO Thomas Buberi, who denied any ties between Axa and Israeli banks targeted by boycott calls. Buberi condemned physical attacks on Axa agents and employees by groups supporting the boycott of Israel, stating that Axa does not take a position on the geopolitical crisis and expressing solidarity with civilian victims. The divestment by Axa signifies a significant step in the ongoing efforts to hold corporations accountable for their involvement in human rights violations and illegal activities.