BDS 101

  • BDS stands for Boycott, Divest & Sanction. It is a movement that aims to challenge the structures that finance, enable and profit from oppression, environmental destruction and systemic violence. By bringing together people of conscience from around the world, the BDS movement can successfully pressure organizations to end their complicity in these unjust and inhumane systems.

    In response to the ongoing Israeli apartheid, in July 2005 over 170 Palestinian civil society bodies issued a collective call for a BDS movement to end the Israeli military occupation, apartheid and oppression of Palestinians.

  • Heck yes! BDS movements in solidarity with Palestine have been successful all around the world. As a direct result of public campaigns, major multinational corporations including Intel, Samsung, Puma, General Mills, G4S and HP are divesting from Israeli industries and either partially or totally cutting ties with the apartheid state. 

    Here are some recent wins:

    • In June 2024, Intel halted construction of a $25 billion factory in southern Israel, within short driving distance of Gaza where the nation is conducting a genocide. (source)

    • By November 2023, the world’s largest sovereign fund had divested its entire holdings of Israel Bonds, amounting to nearly half a billion dollars. (source)

    • By early 2024, more than 80% of Israeli start-ups had suffered damages, with more than half left with a less-than-six-months cash reserve. In addition, the number of “angel investors” dropped by 75% from the previous year, and by mid-2024, an estimated 46,000 Israeli businesses had shut down since the start of Israel’s genocide. The major credit rating agency, Moody’s, downgraded Israel’s credit rating for the first time in the nation’s history to “negative”, reflecting the growing debt, budget deficit, and overall decline in Israel’s economy. This devaluation was echoed by S&P Global Rating and Fitch Ratings (the other two major credit rating agencies). (source, source)

    • In July 2024, pressure from naval blockades and public boycotts led to a significant decline in commercial shipping activities, and corresponding revenues, resulting in the Israeli port of Eilat declaring bankruptcy. (source)

DIVESTING

  • Banks are publicly traded corporations that are required to make decisions that maximize shareholder profits (shareholders are the bank’s owners). Banks will loan money to any business in any industry, regardless of how unethical their activities are, as long as the arrangement generates profit.

    Furthermore, banks make money by loaning your deposits. For every $1 you deposit in your chequing or savings account, the banking industry is able to recycle the deposit into multiple, successive loans (resulting in up to $19 of loans for every $1 deposited). This multiplier effect enables banks to pour significant amounts of financing into industries (such as resource extraction and weapons manufacturing) for the sake of generating profits. Source: World Beyond War webinar with Tim Nash of Good Investing (scan to 1:12)

  • The main banks listed in the BDS list in Canada are: Scotiabank (and its subsidiary, Tangerine), Bank of Montreal (BMO), CIBC (and its subsidiary, SiMPLii Financial), Manulife, Royal Bank of Canada (including HSBC, which it recently acquired), and TD (Toronto-Dominion Bank).

    The common themes that make these banks the worst offenders are:

    1. Investment in military and defence companies: All listed banks have substantial investments in companies that produce weapons, military technology, and other defence-related equipment. These companies include Elbit Systems, General Dynamics, Honeywell, Lockheed Martin, and others. These firms supply weapons, drones, and other military technologies used by the Israeli military. 

    2. Financing Israeli banks and settlements: Many of these banks also own shares in Israeli banks like Bank Leumi and Mizrahi Tefahot Bank. These Israeli banks are involved in financing the construction and maintenance of illegal Israeli settlements in occupied Palestine, actions that violate international law according to the Fourth Geneva Convention.

    3. Support for illegal and oppressive surveillance and security technologies: Some banks hold investments in companies like Palantir, which provides AI-driven predictive technology used for mass surveillance by Israeli occupation forces in occupied Palestine.

    4. Financial support for Israel: Some of these banks provide financial aid to Israel, either directly through investments or indirectly through charitable donations classified as "humanitarian aid." 

    5. Involvement in companies linked to the Israeli genocide of Gazans: These banks invest heavily in multinational corporations (e.g., Boeing, Caterpillar, Honeywell) that are directly funding and violating human rights in occupied Palestine, either through supplying military equipment or through corporate activities that support the policies of the illegal occupation in these regions.

  • There are two reasons this campaign specifically pursues divestment from everyday banking (ie. chequing and savings) activities only:

    1. Because customer deposits form the basis of loans, the greatest impact you can make is by taking your deposits (funds in your chequing and savings accounts) out of the banks, limiting their ability to loan money to violating businesses. 

    2. The decision to divest your other accounts, such as investments, mortgages, and loans, entails greater complexity and should be evaluated with an understanding of the financial and tax implications in mind. You are encouraged to shop around for better mortgage and loan rates and terms, if you have these, so that you make the best decision given your circumstances. We hope you are motivated by divesting your everyday banking, to also explore divesting everything from banks (your new credit union would be a great place to start the discussion).

  • Credit unions offer all the services of traditional banks—chequing and savings accounts, ATMs (fee-free!), investment accounts, mortgages, loans, credit cards, and business accounts—but are fundamentally different due to their member-owned, community-based structure. The main points that make credit unions a possible preferred option is:

    • Member ownership pressures credit unions to serve community needs and prioritize member benefits over shareholder profits. Every account holder is a member with one vote, regardless of their deposit size, fostering a more democratic banking experience. 

    • Credit unions typically focus on investing locally, supporting small businesses and projects that align with their values (such as climate action and social equity). 

    • They typically offer higher interest rates on deposits and lower fees, including fee-free chequing accounts (with a minimum balance) and a small refundable membership fee. 

    • Credit unions are known for excellent customer service, and they have won the Ipsos Financial Service Excellence Awards for 19 consecutive years. 

    • Credit unions are also well-regulated, often offering higher deposit insurance than banks, and are backed by the provincial or federal government.

    You can learn more about credit unions in Canada by visiting Canada's Credit Unions.