Dáil Éireann Debate, Thursday - 18 December 2025
206. Deputy Louise O'Reilly asked the Tánaiste and Minister for Finance the ethical guidelines used to determine whether or not the State will invest in companies with links to the illegal occupied territories; and if he will make a statement on the matter. [73047/25]
View answerThe NTMA have informed me that the Ireland Strategic Investment Fund (ISIF) is a universal owner, meaning its long-term returns are dependent on the economy’s overall health, and therefore integrating Environmental, Social and Governance (ESG) factors are core to its investment approach. ESG consideration benefits ISIF not just through each individual investment, but also at an overall portfolio level, ultimately enhancing the long-term value of the Fund.
ISIF’s overarching approach to Sustainability and Responsible Investment (S&RI) includes the following key tools that ISIF uses to implement ESG in a broadly consistent manner across its portfolios:
Integration: ESG & Climate Framework tool used to assist in the identification, monitoring and mitigation of material ESG risks across the Irish Portfolio. Throughout its investment decision making process, ISIF aims to mitigate and manage ESG issues.
Active Ownership: ISIF has a long history of active ownership and EOS at Federated Hermes provides Active Ownership services for the Global Portfolio and all voting records are reported quarterly on ISIF's website.
Analysis: ISIF uses the services of ISS-ESG to conduct detailed portfolio analytics including carbon foot printing and impact analysis aligned with the UN Sustainable Development Goals (SDG’s).
Divestment & Exclusions: As of May 2024, in accordance with its obligations under the Fossil Fuel Divestment Act 2018, ISIF had developed a list of 247 fossil fuel companies in which it will not invest. In addition, ISIF also maintains an exclusionary strategy around cluster munitions and antipersonnel mines (which are prohibited investments under the Cluster Munitions and Anti-Personnel Mines Act 2008), coal production and processing, tobacco manufacturing and direct investment in companies involved in the manufacture and testing of nuclear weapons or their critical component parts.
The Deputy may be aware of the UN Human Rights Council Database (the UN Database) identifying businesses involved in specific activities which was first issued in 2020, updated in June 2023 and most recently updated to include 158 companies in September 2025 as mandated by the UN Human Rights Council.
ISIF has taken an investment decision to divest from six companies, all of which remain on the updated UN Database, with a total value at the time of the divestment decision of approximately €2.95m. The six companies are Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank Ltd; Mizrahi Tefahot Bank Ltd; First International Bank Ltd and Rami Levi Chain Stores Ltd.
I understand that ISIF will continue to monitor its holdings to ensure that investments remain aligned with its risk profile and investment parameters. ISIF does not comment on individual investments, however a list of ISIF investments are available in the 2024 NTMA Annual Report.
Neither the Future Ireland Fund nor the Infrastructure Climate and Nature Fund have any current investments in the occupied Palestinian territories.
