Both PERS and STRS have extensive investments in companies that supply Israel with equipment that is used in its violations of Palestinian human rights and international law. In 2010, these investments exceeded $3.5 billion.
The IDC has targeted five of these companies and has petitioned PERS to initiate its engagement process with them: Caterpillar, Elbit, Veolia, Bank Hapoalim and Bank Leumi.
The two banks were selected because they are more directly culpable in Israeli violations of Palestinian human rights and international law; and the others because they have been targeted by the international BDS movement, including institutions like the Presbyterian Church, Jewish Voice for Peace and the Israeli group, "Boycott Within." As a result, they are riskier investments, posing a challenge to PERS' obligation to fiduciary responsibility.
Its equipment is used to clear land for the construction of Israeli settlements in the West Bank and East Jerusalem, which are in violation of the 4th Geneva Convention (Article 3, Part 49); and for the construction of the "Separation" Wall, which has been deemed in breech of international law by the International Court of Justice. The systematic demolition of Palestinian homes and farmlands by Caterpillar equipment is in further violation of the Geneva Convention 33 and 53 respectively. Since 2004 the Presbyterian Church USA engaged with Caterpillar, to no avail and is poised to vote for divestment.
This multi-national French company operates apartheid-like transportation services for Israeli settlers and, even more egregiously, the Tovla landfill in the West Bank's Jordan Valley. Using captured Palestinian land and natural resources for the needs of Israeli citizens is also a violation of international law. As a result of being targeted by the international BDS movement, Veolia has already suffered severe financial losses.
These banks are directly culpable in the Israeli violation of the 4th Geneva Convention by providing loans for the continued construction of housing projects in the illegal Israeli settlements, as well as loans to homebuyers and financing of commercial activity and production there. In other words, the settlements thrive as a result of their direct financing.
This Israeli military contractor is one of two main providers of the electronic detection fence and Wall project in the occupied West Bank. The 2004 Advisory Opinion of the International Court of Justice (ICJ) deemed the Wall in breach of international law due to its large deviations from the Green Line (pre-1967 border).
Pursuant to that decision, the public pension funds of three Scandinavian countries either de-listed Elbit or divested from it, and the Danish financial watchdog, Danwatch, placed it on its ethical blacklist.