The ACT government will not divest its shares in companies linked to Israeli settlements in the occupied Palestinian territories saying the move would not be in line with the government's framework.
The Greens have hit out at the Chief Minister over the decision saying Andrew Barr had chosen to display "a clear lack of leadership".
The shares were reviewed following a push from the ACT Greens, who initially called on the government to completely dump the investments.
The investments were reviewed in line with the environmental, social and corporate governance performance standards - known as ESG - in its shareholding policy.
The government's investment advisory board said the shares in the nine companies did not meet a threshold which would allow the investments to be dropped.
The shares underwent a controversies assessment and they were classified as having a rating of "severe or indirect". Under the policy, only shares classified as being "very severe and direct" are dropped.
"The controversy assessment identifies and excludes investment where a company is assessed as having a very severe ESG controversy related to their operations, governance practices, and/or products and services that allegedly violates national or international laws, regulations and/or commonly accepted global norms," the policy says.
The government said if it were to drop its shares in the companies linked to Israeli settlements in occupied Palestinian territories, other companies would need to be excluded.
"This would have an adverse impact and result in a significant narrowing of the ACT government's universe, and over time, impact on investment outcomes for the territory," the government response said.
The Greens' put forward a motion earlier this year urging for the government to dump territory government investments in companies linked to Israeli settlements in the Palestinian territories.
Labor agreed to an amended motion to review the investments in companies linked to settlements in the occupied territories.
The investments in companies reviews included: Airbnb Inc, Alstom SA, Bank Hapoalim BM, Bank Leumi Le-Israel BM, Booking Holdings Inc, Expedia Group Inc, Israel Discount Bank Ltd, Mizrahi Tefahot Bank Ltd and Motorola Solutions Inc.
The companies were identified by the United Nations Office of the High Commissioner for Human Rights as being complicit in the establishment and maintenance of illegal settlements in the occupied Palestinian Territories.
But the advisory board said the UN's database did not have regular or annual assessments on the companies. This assertion was challenged by ACT Greens backbencher Andrew Braddock who said the UN published a report on how it came up with the list.
While the government will not drop the shares Mr Barr said, in a tabled written statement, that the government wanted an end to the suffering. The amended motion said all members voiced their support for a humanitarian ceasefire.
"It remains the firm view of the government that the sentiment and concerns raised by the Assembly remain as serious as they have ever been," he said.
"We restate our support for the Australian government's efforts to address these issues through diplomatic and other channels to ensure an end to the suffering and loss of life and livelihood that sadly continue to play out."
Mr Braddock said divesting from the companies was the "bare minimum" the government could do. He said the territory government had a responsibility to act as a human rights jurisdiction.
"Over 40,000 people have been confirmed dead in the Gaza Strip, including many family members of Palestinians here in the ACT," he said.
"Canberrans are not asking much of their government, just that it does not profit from companies that are enabling Israel to violate the most basic rights of Palestinians to live freely and with dignity."
Following the vote on the motion, it was revealed two Greens members owned shares linked to Israeli settlements. Greens minister Emma Davidson and backbencher Jo Clay both owned such shares. Both divested from the investment upon being alerted by The Canberra Times.
