Major European firms withdraw from doing business with Israeli companies

(MENAFN) Several major financial institutions in Europe have withdrawn from doing business with Israeli firms or companies linked to Israel, according to an analysis by a British news agency. The shift comes amid mounting pressure from activist groups and government actors calling for an end to the conflict in Gaza. While European banks and insurers are clear in their environmental and governance objectives, they often disclose less of their links to war-affected areas, demonstrating a lack of transparency about their exposure to conflict risk.

UniCredit Bank, for example, reportedly placed Israel on its "banned" list as tensions in the area heightened in October of last year, according to a study by the Dutch NGO PAX. This action aligns with the Italian bank’s existing policy against financing arms exports directly to nations engaged in conflict. However, it goes beyond Italy’s national arms export guidelines concerning Israel, indicating a more stringent stance by the bank in this specific case.

Other financial firms have taken similar actions, with Norwegian asset manager Storebrand and French insurance giant AXA reportedly selling shares in various Israeli companies, including banks. Corporate disclosures provide only partial visibility into these firms’ exposure, but they reflect broader efforts by companies to adjust their portfolios and align with shifting priorities on the international stage.

Martin Rohner, executive director of the Global Alliance for Value-Based Banking, which promotes sustainable finance, commented on this trend. He suggested that these decisions could signal a growing awareness within the industry of banks’ influence over capital allocation. Rohner emphasized that investments in the arms sector fundamentally contradict the goals of sustainable development, underscoring the ethical considerations that increasingly shape financial institutions' decisions.

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