Socially Responsible Investing (SRI) is an investment discipline in which the financial returns, as well as the social good, are taken into consideration. Trillions of dollars of US investments are in socially screened portfolios in the United States and is growing rapidly every year. This explosion of growth has enabled the SRI movement to wield increasing influence on global investment and business decisions. As a result, multinational companies and institutional investors are increasingly viewed agents that are capable of driving change, similar to that of politicians and governments. This powerful platform of social change and influence has garnered the attention of a wide variety of activists, including the anti-Israel BDS movement who, over the last few years, has actively engaged in the SRI space to advance its assault on Israel’s legitimacy using well-developed tactics such as shareholder activism. These initiatives misrepresent and distort Israel’s human rights record with the aim to not only undermine Israel’s economy but also isolate it among the nations. As a result of these efforts, institutional investors and companies are under increasing pressure to divest from or avoid ties to Israel.
Left unchecked, institutional investors will come under increasing pressure from the SRI community to divest from Israeli companies or American and European companies selling to Israel due to claimed human rights violations.
For more information, please contact Max Chamovitz.