Public Report on CalSTRS Investments in the Gaza Genocide and Israeli Apartheid
Prepared by: CalSTRS Divest Campaign teacher researchers
Date Last Updated: August 26, 2025

This report outlines approximately $2.2 billion in CalSTRS investments that are in violation of the system’s 2024 Investment Policy for Mitigating Environmental, Social, and Governance (ESG) Risks, which calls for consideration of the following in investment decisions:

1. Respect for human rights
2. Respect for civil liberties
3. Respect for cultural and ethnic identities
4. Respect for property rights
5. Respect for political rights
6. War/Conflicts/Acts of Terrorism.

The investments are in corporations that are knowingly and materially contributing to or profiting from Israel’s military occupation, apartheid system, and ongoing genocide in Gaza — as defined and documented by leading human rights organizations, the United Nations, and the International Court of Justice. There is no evidence provided that CalSTRS has attempted to engage with any of these companies.

The report presents a shortlist of publicly traded equities and financial instruments across four categories. These investments are strongly linked to systematic and well-documented violations of international law and basic human rights. Many of these companies have a long record of complicity in military aggression, displacement, and destruction in the occupied Palestinian territories, particularly Gaza.

We urge CalSTRS to immediately begin the review process for the four companies named in List 1 and the bonds and banks named in List 2, in accordance with the ESG policy sections A-C.  List 3 and 4 are included in an effort to provide a more comprehensive picture for the public, but they are not the immediate targets of this campaign.

Each company and instrument listed has been vetted using third-party documentation, including UN reports, legal analyses, human rights investigations, and financial disclosures. This report is not exhaustive but highlights high-risk, high-impact investments that warrant immediate ESG review and formal assessment under CalSTRS policy.

CalSTRS’ continued investments in these corporations — in light of mounting global evidence of genocide, apartheid, and systemic violations of international law — pose serious ethical, legal, and reputational risks. This report calls for urgent and transparent action in line with CalSTRS' commitments as a signatory to the UN Principles for Responsible Investment.

Total Exposure:  $2,234,423,000

List 1: Priority Divestment Targets: Weapons & Surveillance Technology Manufacturers

Major U.S. and international corporations producing bombs, missiles, aircraft, surveillance systems, and military equipment used by the Israeli military in its campaign in Gaza and its broader occupation apparatus. These companies are directly facilitating mass civilian harm, including the destruction of homes, hospitals, schools, and refugee shelters. These companies have also been key players supporting Immigration and Customs Enforcement (ICE) and U.S. Border Patrol along the U.S.-Mexico border.

Risk: High. Investments in these companies, given their negative press and deep complicity in the Gaza genocide, put CalSTRS’ reputation at risk.

Total Investment:  $531,438,000

List 2: Direct Investments in the Israeli Economy

Includes holdings in Israeli bonds, Israeli currency, and banks that finance illegal settlements in the occupied West Bank. These financial institutions play a central role in enabling the forced displacement of Palestinians and the expansion of settlements deemed illegal under international law.

Risk: High. Israel’s credit rating has experienced two significant downgrades since it began its military campaign in Gaza.

 Total Investment: $81,985,000

List 3: Weapons & Surveillance Technology Manufacturers, Military Supply Chain & Equipment Producers

Companies manufacturing key components for Israeli tanks (e.g., Merkava), naval vessels, and aircraft used in the siege of Gaza and the enforcement of apartheid in the West Bank. These firms support the infrastructure of occupation and play an active role in arming and enabling illegal military operations.

 Total Investment: $1.113 billion

List 4: Fossil Fuel & Energy Corporations

Entities that supply jet fuel and energy resources to the Israeli military, or profit from resource extraction linked to the blockade and occupation of Gaza. Notably includes Chevron, which operates offshore gas fields whose exploitation is tied to Israel’s military blockade.

 Total Investment: $508,000,000

List 1: Priority Divestment Targets: Weapons & Surveillance Technology Manufacturers

List 2: Direct Investments in the Israeli Economy

Israeli currency: As of June 30, 2024, CalSTRS held 5,708,000 New Israeli Shekels (NIS) in its international currency portfolio, valued at approximately $1,515,000 USD. This investment provides direct material support to the Israeli government and economy. Given its history of maintaining an illegal apartheid state, as determined by the International Court of Justice, this investment can be perceived as direct material support for the expansion and maintenance of this system. See CalSTRS’ list of international currencies.

Israel bonds: Bonds provide direct material support to Israel as it commits countless, well-documented human rights abuses against the Palestinian people. Our pensions directly subsidize illegal settlements (as determined by the International Court of Justice) without any promise of making a profit that benefits our members. CalSTRS is guaranteed to receive the principal amount upon the bond's maturity. With inflation, we lose money on Israel bonds. In effect, they act as low-interest loans that subsidize Israel’s illegal settlements and genocide. This is the most direct example of CalSTRS’ own complicity in providing material support for the Israeli government, which enables it to continue building illegal settlements in the West Bank and expand the genocide in Gaza. Monies must be withdrawn immediately to have the most direct impact in pressuring Israel to give up its campaign of ethnic cleansing and forced displacement. We request that CalSTRS NOT purchase any new Israel bonds, NOT renew any bonds after they mature, and immediately sell remaining Israel bonds. See CalSTRS’ list of debt securities.

Israeli Banks:  Israeli banks play a central role in supporting illegal settlements in the occupied Palestinian territories through various financial services. They finance construction projects by offering loans and accompaniment agreements to developers, often taking ownership stakes in case of default. Banks also provide mortgages to individuals buying homes in settlements, directly facilitating their expansion. In addition, they serve settlement municipalities, helping sustain their infrastructure and administration, while operating branches that are inaccessible to Palestinians, reinforcing segregation. Furthermore, Israeli banks dominate Palestinian financial systems by controlling currency clearing and imposing restrictive conditions, limiting Palestinian economic autonomy. These actions violate international humanitarian law by aiding the transfer of Israeli civilians into occupied territory, contributing to land appropriation, displacement, and systemic discrimination. As a result, human rights organizations have called for greater accountability and an end to these practices. See CalSTRS’ list of international equities.

List 3: Weapons & Surveillance Technology Manufacturers, Military Supply Chain & Equipment Producers

There is less public recognition for their involvement, but all of these corporations are egregiously contributing to the Gaza genocide by participating in the military’s supply chain. These investments demonstrate international complicity in war crimes and human rights abuses committed against the Palestinian people. These corporations directly provide material support to the Israeli military by producing critical components of Merkava tanks (used extensively in Gaza), Israeli warships (used to enforce a blockade by sea), and aircraft (used to conduct surveillance and launch aerial attacks). CalSTRS must immediately review its investments in these companies.

List 4: Fossil Fuel & Energy Corporations

Chevron is the most egregious corporation on this list and is notably the target of another divestment campaign, Fossil Free California. The natural gas field off the coast of Gaza makes it desirable to corporations like Chevron and entities like Israel, both of which are willing to completely wipe out the population to extract that resource for profit. Valero and Paz Oil provide jet fuel that is critical to the ability of the Israeli military to fly jets over Gaza and drop 1000 and 2000-pound bombs in airstrikes that can kill up to 100 people with one bomb.