A growing number of European financial institutions have a business relationship with companies with ties to Israeli settlements, according to a study by civil society groups on Tuesday, calling for heightened due diligence.
Israeli settlement activity has expanded by a record amount, and some settlers hope US President-elect Donald Trump will help them fulfill a dream of imposing sovereignty over the area seen by Palestinians as the heart of a future state.
Rising settler violence has led to US sanctions, and some companies have said they would stop business in the West Bank.
In total, 822 financial institutions this year have relationships with 58 firms "actively involved" in Israeli settlements versus 776 in 2023, The Don't Buy into Occupation coalition report said. They called for heightened scrutiny and, if necessary, for divestments.
"The indication is that things are going the wrong way," said Andrew Preston with Norwegian People's Aid, which is one of the 25 European and Palestinian civil society groups that conducted the research.
"In our view, European financial institutions should be urgently reassessing their approach to companies involved in the illegal occupation," he told the Geneva Press Club, where the report was presented.
Firms linked to Israeli settlements in West Bank
Israel's Finance Ministry did not immediately respond to a request for comment.
The West Bank is a kidney-shaped region about 100 km (60 miles) long and 50 km (30 miles) wide that has been at the heart of the Israeli-Palestinian conflict since it was captured by Israel in the 1967 Middle East war.
Most countries consider the area as occupied territory and deem the settlements illegal under international law, a position upheld by the UN's top court in July.
Among the European firms listed were top banks, including BNP Paribas and HSBC, the report said. The banks did not immediately respond to a request for comment.
The 58 partner firms include heavy machinery maker Caterpillar Inc. and travel sites Booking.com BKNG.O and Expedia EXPE.O, according to the report. None of those companies immediately responded to a request for comment.
Booking.com previously said it updated its guidelines to give customers more information to make informed decisions about disputed and conflict-affected areas. Expedia has said its accommodations are clearly identified as Israeli settlements located in the West Bank.
Many, but not all, of the 58 companies in the report are also listed in a UN database of companies doing business with Israeli settlements. Some financial firms have divested from firms linked to Israeli settlements in recent years, the report said, including Norway's pension fund KLP.