World’s seventh largest bank HSBC has divested from Israeli weapons maker Elbit Systems over human rights concerns in a move seen as a victory for the Boycott Divestment and Sanction (BDS) movement that fights Israel’s occupation of Palestine.
While HSBC had yet to officially announce the decision informed sources within the UK-based bank confirmed Thursday that it had ended its investments in Elbit one of Israel’s biggest military contractors.
The company states that although it never takes sides on political issues it still “observes international human rights principles” that govern businesses.
British activist group “War on Want” announced Thursday that HSBC decided to divest from Elbit after receiving over 24000 emails from people concerned about its ties to Elbit and other firms that helped Israel suppress the Palestinian people.
In their emails the activists told HSBC that its involvement with the Elbit Systems violated the bank’s self-proclaimed policy of not providing financial services to “companies involved in the production or selling of cluster munitions.”
It also was in breach of the UN Guiding Principles on Business and Human Rights the group added.
“HSBC has taken a positive first step in divesting from Elbit Systems the notorious manufacturer of drones chemical weapons cluster bomb artillery systems and other technology used in attacks against Palestinian civilians and to militarize walls and borders around the world” Ryvka Barnard War on Want’s senior campaigner on militarism and security said.
“Doing business with companies like Elbit means profiting from violence and human rights violation which is both immoral and a contravention of international law” she added.
Barnard noted that HSBC was still maintaining ties with over a dozen other Israeli firms involved in crimes against Palestinians.
In fact HSBC’s $3.92 million investment in Elbit was a small fraction of the $1.05bn it has invested in companies that provided equipment to the Israeli military according to War on Want.
Elbit Systems is Israel’s second largest arms manufacturer according to Who Profits a group that tracks companies benefiting from Israel’s occupation of Palestinian lands.
The Palestine Solidarity Campaign (PSC) another pro-BDS organization in Britain also hailed the banking giant’s decision and called on other companies to follow suit.
Besides HSBC other major companies such as Airbnb and Quakers in Britain as well as Leeds University have made similar announcements this year joining the BDS movement.
PSC director Ben Jamal said HSBC’s decision shows BDS’ effectiveness “as a tactic against Israel’s continued flouting of international law and human rights.”
