The financial sector cannot turn a blind eye to the more than 50,000 deaths, including 15,000 children, and to the hunger. Last year, the Don't Buy Into Occupation report showed that many European financial institutions are still investing billions in companies involved in illegal Israeli settlements. As financial institutions, we have a moral and legal duty not to become directly involved in human rights violations, as laid down in UN and OECD guidelines. We must use our influence to prevent these violations. If we fail to do so, we are obliged to withdraw our investments in a responsible way.
This means that financial institutions must thoroughly investigate the companies in which they invest. Only in this way can abuses be detected or prevented. Institutions must conduct their own research and not rely too heavily on data providers. Recent research by Follow the Money (Dutch, behind paywall) has shown that two large financial data providers have changed their working methods under pressure from pro-Israeli companies, as a result of which abuses in Palestinian territories are no longer being recorded. Anyone who relies solely on these analyses is therefore basing their decisions on deliberately filtered data.
Financial institutions do not have to exclude countries in principle, but they do have to monitor the companies in which they invest closely. Triodos Bank bases its investments primarily on what a project or company does, according to very strict minimum requirements. We assess whether a company or project contributes positively to people, the environment and society, and carefully check for involvement in unacceptable activities, such as human rights violations. New insights can always lead to a reassessment of our investments.
In short, financial institutions have a major responsibility not to facilitate human rights violations, either directly or indirectly. Only through thorough research, strict minimum requirements and constant vigilance can we fulfil our role as socially responsible investors. Passivity is not an option; especially in times when human rights are being violated on a large scale, we must use our influence to encourage change and choose investments that contribute to a just and humane society.