AS pressure grows on foreign companies active in Israel amidst criticism of its conduct during the ongoing conflict in Gaza, Spanish manufacturer CAF has issued an extensive statement in support of its role in light rail projects in Jersualem, highlighting the due diligence activities it has conducted prior to and during its work.

CAF confirms in the statement that it expects to be included in the upcoming list of companies that are deemed to participate, directly or indirectly, in some of the activities listed in the annual report of the United Nations High Commissioner for Human Rights. Inclusion in the list, due to be published shortly, is expected to increase scrutiny of CAF and pressure to cease its activities in Israel.

CAF holds a 50% stake alongside Israeli construction firm Shapir Civil & Marine Engineering in CFIR Light Rail (previously TransJerusalem J-Net), which was awarded a contract worth €1.8bn in September 2019 to construct the 22km Green Line as well as a 6.8km extension of the Red Line in Jerusalem. Work on both projects is on course for completion in 2027.

The companies also have a separate contract that commenced in 2021 to operate both lines for 15 years, with the possibility for an extension to 25 years, and to provide maintenance for 25 years. CAF is supplying 114 Urbos LRVs for the Green Line along with signalling, communications and power supply systems. It will also refurbish the 46 Alstom Citadis LRVs operating on the existing 13.8km Red Line.

CAF has been criticised in Spain for its work in Israel, specifically for helping to construct the light rail lines, which are allegedly facilitating what has been termed as the Israeli government’s illegal annexation of East Jerusalem by connecting Israeli settlements within the territory to West Jerusalem. This mirrors broader international criticism of the Jersualem light rail project, the first phase of which opened in 2011.

However, in the statement issued on September 25, CAF highlights the due diligence procedures it says it has followed in the projects it has worked on in the city, which it says do not violate human rights but offer a positive contribution to the entire population, including the Arab minority.

Ethical implications

CAF says it is “firmly aware” of the complex legal and ethical implications of the Jerusalem light rail project, specifically relating to international humanitarian law and corporate accountability. It goes on to outline how it has followed various protocols.

This includes, prior to the signing of the contract for the project, a detailed legal analysis that was conducted with the assistance of independent experts who confirmed the absence of any breach arising from CAF’s participation in the project. In addition, CAF’s own initial risk assessment of the project found no violations of human rights. Instead, the project was found in these assessments to have a positive, non-discriminatory impact, providing access to basic social services and providing sustainable and eco-friendly infrastructure.

“Beyond compliance with the applicable regulatory framework, CAF is firmly committed to business ethics and the respect for human rights across all its operations, including its value chain, based on the highest standards of accountability and transparency,” the statement says.

“To this end, CAF has established a set of rules, procedures, and systems, adopted at the highest level, which together constitute a comprehensive compliance system applicable to the entire group, as well as to third parties contracting with CAF, with the purpose of preventing and addressing any conduct that could be unethical or contrary to the law, or CAF’s internal regulatory system.”

“Accordingly, throughout the execution of the project, CAF has implemented specific due diligence measures with three levels of intensity (general, enhanced, and intensified), in accordance with the Guide on Heightened Human Rights Due Diligence for Business in Conflict-Affected Contexts, published by the United Nations, in order to identify, prevent and mitigate, where appropriate, any adverse impact on human rights.

“CAF remains committed to acting in accordance with the highest standards of integrity, accountability, and transparency, and to continuing to prioritise the monitoring of any material issue relating to ethics and human rights, as well as of the regulatory framework under which it operates.”

The full statement is available here.