Shay Brennan (Dublin Rathdown, Fianna Fail)
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267. To ask the Minister for Finance his response to the issue of divestment by the Ireland strategic investment fund from all companies involved in illegal Israeli settlements (details supplied); and if he will make a statement on the matter. [6096/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The UN maintains a database of businesses involved in certain specified activities relating to settlements in the occupied Palestinian territories, OPT. The UN list was developed in 2020 with a qualified update in 2023.

At the end of 2023, direct investments by the Ireland Strategic Investment Fund, ISIF, in companies on the UN database was approximately €4.2 million in 11 companies. ISIF’s indirect investments included eight companies, totalling approximately €9.4 million. ISIF divested from six of these companies with a total value of approximately €2.95 million in 2024. The six companies were Bank Hapoalim BM, Bank Leumi-le Israel BM, Israel Discount Bank Limited, Mizrahi Tefahot Bank Limited, First International Bank Limited and Rami Levi Chain Stores Limited.

ISIF continues to monitor its holdings to ensure that investments are within ISIF’s risk profile and investment parameters. Given commercial sensitivities, ISIF does not comment on individual investment decisions. ISIF publishes information on the overall return of its global portfolio as part of the National Treasury Management Agency's, NTMA, annual report but does not publish a breakdown of returns by each individual investment.

The amount of investment by ISIF in the companies on the UN list is small compared with the market capitalisation of many of these companies. It is also small - if not very small - relative to the size of the overall Israeli economy.

The issue of whether investments by ISIF in particular companies which, as part of their business model, have some activity in the occupied Palestinian territories runs contrary to the rulings of the International Court of Justice would need further consideration. I understand that discussion is ongoing at EU level on a legal analysis of the advisory opinion from the Court.

The National Treasury Management Agency (Amendment) Act 2014 sets out ISIF’s mandate with regard to the investment of the fund. Under the amendment Act, the agency has responsibility for determining, monitoring and keeping under review an investment strategy for the fund in accordance with the investment policy for the fund.

ISIF has a policy of limited disinvestment in respect of its holdings. For example, the Fossil Fuel Divestment Act 2018 provides for the divestment by ISIF from certain fossil fuel undertakings. This builds on ISIF’s existing investment exclusionary strategy in respect of cluster munitions and anti-personnel mines, coal production and processing and tobacco manufacturing.