Several of Finland’s largest pension funds have invested nearly €90 million in international companies operating in Israeli settlements in occupied Palestinian territories, according to data reviewed by Yle.
The funds, Varma, Ilmarinen, and Elo, hold shares in Airbnb and Booking Holdings, both of which list accommodation in Israeli settlements built in the West Bank and East Jerusalem.
A review of Airbnb listings reveals multiple properties located in settlements without disclosing their location’s political status. One host in Rehelim advertises “a particularly relaxing atmosphere” with photos of a pool, but makes no mention that Rehelim is a settlement. According to the Israeli human rights organisation B’Tselem, residents of Rehelim have repeatedly attacked Palestinian farmers in the area.
The settlements are considered illegal under international law. The International Court of Justice has ruled that both Israel’s occupation and the settlements violate international legal norms.
The UN’s Office of the High Commissioner for Human Rights (OHCHR) maintains a list of companies with ties to the settlement economy. The list includes dozens of Israeli firms and 16 international companies based in the US, UK, and EU member states.
All three Finnish pension funds hold shares in Airbnb and Booking Holdings, which are on that list. Elo also holds shares in Expedia Group, which owns Hotels.com, another platform offering accommodation in Israeli settlements.
Sonja Finér, Executive Director of Finnish watchdog group Finnwatch, said the investments are in conflict with the funds’ own ethical guidelines. “These are companies that continue operating in settlements year after year,” she said. “They should be excluded from investment portfolios.”
Pension companies manage over €170 billion in investment assets. While the sums invested in Airbnb, Booking, and similar companies represent a small fraction of that total, Finér said their presence in the portfolios is politically and legally significant.
Three years ago, the funds told Finnwatch they were aware of the issue and looking for solutions. Since then, some have increased their holdings.
Varma had previously stated that settlement activity violates its norms. However, it added Airbnb to its portfolio and reintroduced Booking Holdings after previously excluding it in 2022. Ilmarinen increased its Airbnb holdings in 2023.
“It is surprising to see this during a time when the situation between Israel and Palestine has severely worsened,” said Finér, referring to the Gaza war and the rise in violence in the West Bank.
According to The Guardian, more than 2,000 listings were available on Airbnb and Booking.com in settlements in the West Bank and East Jerusalem in early 2025. A UN report also notes a rise in settlement-based listings in recent years.
Finér said it is not realistic to expect companies to operate in Israeli settlements without violating international law. “When there has been no meaningful change, continuing dialogue is not enough,” she said.
All three pension firms responded to Yle but avoided giving direct answers to most questions.
Ilmarinen said it does not comment on individual investments. It uses a third-party provider to screen for companies that violate international norms and is currently analysing its portfolio with a focus on conflict zones and human rights risks.
Varma said it had no reason to believe Airbnb or Booking Holdings violated international agreements as of the end of 2024. It also relies on external services to detect norm violations and stated it attempts to engage with companies before making divestment decisions.
Elo similarly said it monitors companies with identified links to Israeli settlements and has been in contact with them. All three companies stated they are prepared to divest if no corrective action is taken or if violations are found to be serious.
Finnwatch has called for more decisive action.
“Normally, we don’t immediately call for divestment,” said Finér. “But in this case, the situation has been clear for years. Airbnb’s continued presence in the settlements shows that engagement has failed.”
The OHCHR list is used by several Nordic pension funds as a reference for investment decisions. In 2021, Norwegian fund KLP divested from several companies on the list.
Israel dismissed the UN list when it was first published in 2020. While the list is not exhaustive and updated infrequently, the most recent version is from summer 2023, it remains one of the few internationally recognised sources tracking commercial activity in settlements.
Only one company on the list, French manufacturer Alstom, responded to Yle. It said it has requested to be removed from the list, claiming it no longer operates in or is connected to the occupied territories.
HT
