Pension funds in Switzerland are facing mounting pressure to divest from companies operating in occupied Palestinian territories, with 638 signatories—including members and retirees of CAP-Prévoyance—demanding a review of holdings totaling 246 million francs. This movement, led by unions SIT and SSP, targets investments in firms flagged by UN reports and exclusion lists from the Norwegian Sovereign Wealth Fund, citing concerns over human rights violations, military equipment supply, and environmental impact.
Why are CAP-Prévoyance members calling for divestment?
The core of the dispute lies in a portfolio of 62 companies that critics argue contradict the ethical standards of CAP-Prévoyance’s own Socially Responsible Investment (SRI) charter. According to a 2024 report from the pension fund, these investments account for 4.4% of the institution’s total managed assets. Signatories of the open letter argue that these holdings, which include firms identified by UN Special Rapporteur Francesca Albanese as profiting from the conflict in Gaza, make the pension fund potentially complicit in human rights abuses.
The list of companies under scrutiny includes:
- Technology and Surveillance: Motorola, a provider of mobile network infrastructure for the Israeli military, and Palantir, which supplies artificial intelligence surveillance tools.
- Construction and Logistics: Caterpillar, known for supplying D9 bulldozers utilized by the Israeli military.
- Hospitality: Airbnb and Booking.com, both cited for offering vacation rentals located in illegal settlements in the West Bank.
- Commodities and Tobacco: Glencore for coal extraction, alongside British American Tobacco and Philip Morris for their involvement in the tobacco industry.
The Norwegian Sovereign Wealth Fund, the world’s largest, frequently updates its exclusion list based on criteria including corruption, environmental damage, and the production of nuclear weapons. Many of the companies currently held by CAP-Prévoyance appear on these international watchlists.
How does this compare to other Swiss pension funds?
The push for divestment at CAP-Prévoyance follows similar actions taken by other Swiss public pension institutions. The Caisse de prévoyance de l’État de Genève (CPEG) decided in the summer of 2025 to divest from sovereign bonds issued by the State of Israel. Additionally, the Assemblée des délégué-e-s of the Caisse intercommunale de pensions (CIP), which serves as the Vaudois equivalent to CAP-Prévoyance, has formally voted to divest from placements linked to the region.
By contrasting these actions, it becomes clear that public sector pension funds in Switzerland are increasingly aligning their investment strategies with broader human rights and ethical frameworks. While CAP-Prévoyance has yet to follow the same path, the open letter demands a comprehensive plan by the end of 2026 to ensure the fund’s future portfolio meets more rigorous ethical requirements.
What are the next steps for the fund?
The open letter from unions SIT and SSP serves as an ultimatum for the foundation’s management. Signatories are calling for an immediate liquidation of the identified assets to protect the reputation of the fund’s contributors and retirees. The demand is not merely for divestment but for an overhaul of the current SRI charter, which the signatories claim is currently insufficient to prevent investments in companies linked to environmental destruction or crimes against humanity.
Pro Tip: Pension holders can track the transparency of their own funds by reviewing annual SRI reports, which are required to disclose the methodologies used for screening controversial investments.
Frequently Asked Questions
What is the total value of the questioned investments?
According to the 2024 CAP-Prévoyance report, the fund holds 246 million francs across 62 companies identified in the UN-linked reports.
Are these companies only being criticized for their role in the Israeli-Palestinian conflict?
No. The companies are also cited for broader issues including tobacco production, environmental damage, corruption, and the manufacturing of nuclear weapons, consistent with exclusions applied by the Norwegian Sovereign Wealth Fund.
What is the deadline for the requested changes?
The open letter requests that the Fondation CAP-Prévoyance inform personnel and pensioners of their new, more rigorous investment measures by the end of 2026.
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