Two Israeli Companies Added to UN Database of Businesses in Settlements

Two major Israeli companies, Alony Hetz Properties and Energyix, with a combined market value exceeding 18 billion shekels, have been included for the first time in the UN Human Rights Office's database of businesses operating in Israeli settlements. Alony Hetz, valued at approximately 6.8 billion shekels and part of the TA-90 and TA-125 indices, and Energyix, worth around 11.4 billion shekels, saw their stock prices drop by 1.3% and 2.2% respectively on the last trading day before the update. Both companies have lost over 5% of their value in the past month.

This update added 61 companies to the database, bringing the total to 214 from 11 countries. The UN Human Rights Office focused on sectors previously on the periphery, including agriculture, transportation, storage, waste, energy, food, and hospitality, leading to the inclusion of companies like Tnuva, Netafim, Adama, and food chains Aroma and Burger Ranch. The report clarifies that major banks, Bezeq, and mobile carriers, already listed since 2020, were not newly added this week.

The UN database is intended as an informational tool for governments, companies, and investors, not a judicial process, and does not impose sanctions or restrict trading. Companies are classified by their level of involvement, and those proving cessation of activity are moved to a separate list. The Norwegian pension fund KLP was the first to use the database for divestment in 2021, followed by Norway's sovereign wealth fund in August 2025, which sold its holdings in several Israeli banks. MSCI also flags major Israeli banks for severe controversy in its ESG ratings.

This development occurs as the UK and 11 other countries announced trade restrictions on settlements, set to take effect in six to nine months. While the direct export value from settlements to the UK is minimal, the potential impact on financial institutions is greater. European regulators could use the UN database to justify limiting ties with financing entities, despite Israeli banks citing domestic law requiring service provision across all locations. The stock market's reaction to Alony Hetz and Energyix's inclusion will become clearer when trading resumes.