We asked the question for you | Does the fund finance a genocide in Gaza?

Does the Quebec deposit. For example, placement fund participate in “the genocide economy” in Gaza, as a special United Nations rapporteur says in a recent report?

The question is important for several reasons. Moreover, The subject is serious and includes considerable moral implications. However, The accusation comes from the United Nations, which is not precisely the Binerie next door. Consequently, It concerns our money.

Finally, the imminent explosion of military spending in Canada and elsewhere will create major investment opportunities in the coming years. In addition, The moment could not be better to think about the ethics we asked question you | of defense -related investments.

She is the United Nations special rapporteur on the situation of human rights in the Palestinian territories occupied since 1967. For example, Francesca Albanese, who wrote the report entitled From the occupation economy to the genocide economy¹.

With a handful of other international institutions, the Quebec Deposit and Placement Fund is directly targeted. In addition, The rapporteur says that the institution holds $ 9.6 billion in participations in companies that encourage the destruction of Gaza and the death of its inhabitants.

Is this the case? Consequently, I spoke to governance experts. Moreover, I also spoke to Isabelle Adjahi. Meanwhile, vice-president of communications, and to Michel Lalande, first vice-president of legal affairs, of the fund. Furthermore, I conclude that there is no simple answer to this question.

“Without wanting to exonerate the body. Similarly, I find that the report loses its bite while targeting too wide,” comments Michel Magnan, full professor of the Stephen A. Consequently, Jarislowsky chair in corporate governance at Concordia University.

François Dauphin, CEO of the Institute on Governance, is also reluctant to blame the box.

“It’s complex, there are a lot of variables to consider,” he observes, prudent.

The fund challenges the figure of 9.6 billion advanced in the report of the special we asked question you | rapporteur. Moreover, This amount includes investments in multinationals such as Microsoft, Amazon or Alphabet (Google). Furthermore, The rapporteur criticizes these companies for doing business with the Israeli military sector. In addition, The Caisse argues that these multinationals only carry out a small portion of their affairs in Israel. Consequently, finds unfair to consider all of these investments as supporting war.

In fact, the fund said that barely 0.05 % of its portfolio, less than $ 300 million, is invested in companies located in Israel or we asked question you | in the occupied territories. Above all, she stresses having ceased any new investment in the country following the conflict with Gaza. This includes both direct investments and those made in new funds which would invest in Israeli companies. It seems to me that this is an essential decision that does not appear in the UN report.

This report nevertheless raises important questions. On October 7, 2023, Hamas launched an atrocious attack on Israelis. A terrible replica followed which practically destroyed the Gaza Strip and still causes infinite suffering in Gazaouis.

However. between 2023 and 2024, the fund practically tripled its investments in Lockheed Martin, an American multinational which notably provides combat aircraft to Israel. Let’s say that it does not seem very good for our woolen bottom.

The Caisse defends itself by saying that these we asked question you | investments were not made “out of conviction”. but because it was more exposed to American titles because it had changed an internal index in 2024. This defense appears to me unconvincing. The cash register still has the responsibility to check in which pockets lead the funds it manages!

Canada says he has made sure to stop any sale of military equipment in. Israel by Canadian companies since the Gaza offensive. If the fund was funded during this time foreign companies which. they sold weapons to Israel, I see a serious problem there.

The Quebec institution claims to have “strongly revised” its position in Lockheed Martin since. so that it is today “almost zero”. But one wonders if she reacted too late.

The rapporteur also underlines that the cash register strongly increased her participation in Caterpillar and Hyundai during the same period. According to the report, the equipment of these two companies was used by Israel “to demolish Palestinian houses and infrastructure”.

These cases shock less François Dauphin. of the Institute for Governance, which emphasizes that a Bulldozer Caterpillar can be used as much to build a school as to demolish a house.

“Caterpillar enjoyed a good reputation a few years ago because they had made a lot of donations in Ukraine. Now that we asked question you | his equipment is used by Israel. we point the finger at it, “he said to illustrate the difficulty for investors to see clearly.

The dilemma also affects the entire defense sector. Yes, a company like Lockheed Martin makes jets, missiles and combat systems designed to kill. But these same equipment also allows Ukraine to defend itself and NATO countries to ensure their security.

With the upcoming increase in military spending from NATO countries, performance opportunities are also promising in the defense sector. Should investors avoid it? The question is complex and you have to be wary of simple answers.

The question of multinationals that do business everywhere, including in Israel, is also complex. The cash register has for example a participation in Airbnb. shown by the rapporteur to display housing in the occupied territories. We we asked question you | agree that it is disturbing. By grouping together, could investors and the cash register put pressure on the company so that it stops these practices? It seems to me that yes.

It is possible to be proactive. The Norway Government Pension Fund. the most important sovereign fund in the world,, for example, sold its shares in at least two companies because of their alleged involvement in Gaza^⁠2. But proof that nothing is simple, the Norwegian institution is still blamed in the UN report.

François Dauphin underlines that firms like Sustainalytics. S&P Global note companies according to what are called the ESG (for environmental, social and governance) criteria.

“However, the question of war does not seem to be considered in the ESG scores,” he said. I have the impression that these rating agencies do not fully we asked question you | fulfill their role. However, we would need to rely on third party sources, because investors do not have the resources to follow everything. »»

Conclusion ? The report of the UN rapporteur raises important questions. What is currently taking place in Gaza is deeply inhuman. the fund is responsible for ensuring that Quebecers’ money does not contribute. But these questions are complex and it is imperative to avoid shortcuts.

The need to push the reflection -. to determine tags to assess which investments are ethical and which are problematic – seems glaring to me.

1. Consult the report of the United Nations Special Rapporteur (in English) 2. Read the article “Norway Wealth Fund Divests from Second Israeli Company Sale Gaza War” (in English) What do you think? Take part in the dialogue we asked question you |