Learn
What is Divestment?
Divestment is the process of withdrawing investments from companies, organizations, or countries that are involved in practices that violate human rights or ethical standards. In the context of the Boycott, Divestment, Sanctions (BDS) movement, divestment specifically targets entities that contribute to or benefit from injustices, such as the Israeli occupation of Palestinian territories.
The BDS movement calls for individuals, institutions, and governments to stop supporting and profiting from activities that perpetuate human rights abuses. By divesting from companies involved in these practices, supporters aim to pressure those responsible to change their behavior and adhere to international human rights standards. Divestment is a non-violent way to show opposition and seek accountability, complementing other tactics like boycotts and sanctions.
Learn more: What is BDS?
Summary of AFSC’s Divestment Campaign
The American Friends Service Committee (AFSC) advocates for divestment from companies that contribute to human rights abuses and violations of international law, particularly in relation to the Israeli-Palestinian conflict. The AFSC argues that investments in certain corporations support the Israeli military and the ongoing occupation of Palestinian territories. These companies are involved in the production and supply of military equipment and technology used in actions that lead to significant harm and suffering among Palestinians.
AFSC's divestment campaign calls for institutions to sever financial ties with these companies to promote peace, justice, and human rights. They emphasize the importance of ethical investment practices and the role of financial institutions in either supporting or undermining human rights. The campaign aligns with broader global movements advocating for similar measures against companies contributing to systemic injustices.
Learn more: afsc.org/divest
How is CalSTRS contributing to the Gaza Genocide?
CalSTRS has billions of dollars invested in the Israeli occupation, apartheid and genocide of the Palestinian people, including companies that manufacture and deliver weapons and surveillance technologies used in armed conflict globally and especially in Gaza and the West Bank. The following examples are far from a complete list, but their role in the occupation is especially egregious.
Investments in genocide and illegal settlements
Caterpillar Inc. provides the giant, military-grade, D9 bulldozers that have been and continue to be responsible for the illegal home demolitions of thousands of Palestinians in both the West Bank and Gaza, and the infamous murder of American activist Rachel Corrie. Caterpillar is well-known for its complicity in the development of illegal settlements and the destruction of Palestinian homes. CalSTRS owns $213,827,000 worth of shares in this company as of June 2024.
Palantir Technologies Inc. stands accused of enabling wholesale violations of human rights of asylum seekers and migrants by providing technology used by Immigration and Customs Enforcement (ICE) that ultimately led to the detention and separation of migrant children. Palantir contracts with the Israeli military to provide surveillance of Palestinians, and the company developed the AI software "Lavender," which targets Palestinians in Gaza with little human oversight. CalSTRS owns $44,875,000 worth of shares in this company as of June 2024.
Elbit Systems is the largest Israeli weapons company and a major research and development partner to the Israeli Ministry of Defense. Its weapons are routinely used in war crimes against Palestinians and its surveillance systems are used in Palestine and along the U.S.–Mexico border. There is a targeted campaign against Elbit, notably Palestine Action's work to shut down factories in the UK. Elbit supports the development of checkpoints in the West Bank. CalSTRS owns approximately $7,275,000 worth of shares in this company as of June 2024.
Lockheed Martin Corp. is the world's largest military company. designs, manufactures, and sells fighter jets, attack helicopters, armored vehicles, missiles, surveillance radars, and other weapons and surveillance systems. As of 2022, it is the largest military contractor in the world. It specifically manufactures the Hellfire missiles that have been used to target civilians in Gaza since October 2023. CalSTRS owns approximately $176,868,000 worth of shares in this company as of December 2024.
Boeing’s products have enabled deaths and devastation in communities around the globe, including Palestine. Boeing made the most guided bombs and munitions delivered to Israel of any U.S. company from 2021-2023. Most aerial deportations of U.S. Immigration and Customs Enforcement ("ICE Air") are conducted using Boeing aircraft. CalSTRS owns $198,608,000 worth of shares in this company as of June 2024.
General Dynamics Corporation has been accused of assisting in the militarization of the US-Mexico Border and providing unlawful surveillance of immigrant communities. General Dynamics Corporation makes the metal bodies for the MK-80 bomb series, one of the primary aerial munitions used to bomb Gaza. CalSTRS owns $84,751,000 worth of shares in this company as of June 2024.
Northrop Grumman is the world's sixth largest weapons manufacturer. It supplies the Israeli Air Force with the Longbow missile delivery system for its Apache attack helicopters and laser weapon delivery systems for its fighter jets. It has also supplied the Israeli Navy with Sa'ar 5 warships, which have participated in the assault on Gaza. On Dec. 15, Northrop Grumman was awarded an $8.9 million contract for 30mm MK44 Stretch cannons for the Israeli military, funded by U.S. taxpayers' money. The weapons will be manufactured in Mesa, Arizona, with an expected completion date of March 2025. Israel uses these guns on its Namer Armored Personnel Carrier, which has been used extensively in Gaza. CalSTRS owns over $110 million worth of shares in this company.
Other complicit investments
Israel bonds
Israel's Bank Luemi has branches in a number of illegal West Bank settlements and provides private loans and mortgages to settlers. Bank Leumi also issues the State of Israel’s Jerusalem Bonds that fund Israel’s military operations. Despite Moody’s 2024 downgrading of investments in Israel, citing “material negative consequences for Israel's creditworthiness in both the near and longer term,” the CalSTRS portfolio, posted online, continues to show investments in Israeli companies and additional Israel bond issuers, such as the Israel Discount Bank.
CalSTRS has owned approximately $22 million in stock since spring 2024, when the Biden administration imposed sanctions on illegal settlers, noting their settlements violated international law.
Fossil fuels
Valero Energy is known for poisoning communities, endangering the climate and providing jet fuel for warplanes. CalSTRS owns over $95,000,000 worth of shares in this company as of June 2024.
Chevron runs natural gas extraction and pipelines off the shore of Palestine/Israel, making it a major partner in Israeli energy apartheid, the military blockade on Gaza, and the illegal exploitation of Palestinian land and resources. Fossil Free California has advocated for CalSTRS to divest from Chevron to combat the climate crisis, but CalSTRS refused. The BDS Movement has listed Chevron as one of its primary targets. CalSTRS owns about $267 million worth of shares in this company.
Shipping and Logistics
Zim Shipping is Israel’s largest shipping company, and has been blockaded and protested due to its commitment to transporting cargo to Israel during its bombardment of Gaza, including weapons that are used to kill and oppress Palestinians. CalSTRS owns approximately $1,317,000 worth of shares in this company as of June 2024.
Maersk has transported over $300 million of weapons components for the top five weapons manufacturers for assembly in the United States, which is the world’s largest supplier of military weapons. CalSTRS owns approximately $22,316,000 worth of shares in this company as of June 2024.