Maersk denied shipping arms or ammunition to Israel during its war on Gaza in response to a shareholder proposal at its annual general meeting (AGM) but acknowledged shipping military-related cargo.
"Maersk has a strict policy of not shipping weapons or ammunition into any active conflict zone," CEO Vincent Clerc told shareholders on Tuesday.
The proposal to ban Maersk from shipping arms to Israel was put forward by Danish shareholder group Kritiske Aktionaerer.
Activist group Eko in a separate proposal called for Maersk to enact greater transparency in its human rights processes, particularly focusing on high-risk areas including arms shipments.
"We are fully compliant with all applicable laws," said Clerc, adding that Maersk acts in accordance with United Nations guiding principles on business and human rights and OECD guidelines on responsible business conduct.
European Union nations' arms exports to Israel in the 2014-2022 period have reached $6.8 billion.
UN experts have called on countries to impose sanctions and an arms embargo on Israel, arguing that Israel's military offensive in Gaza since October 7, 2023, in which Gaza health officials say more than 48,000 people have died, amounted to genocide.
Maersk ships cargo to Israel for US government agencies with its US subsidiary Maersk Line, Limited (MLL).
Both shareholder proposals were dismissed by shareholders. The family-owned holding company Maersk Holding owns 41.5 percent of the shares and 54.5 percent of the votes in the Danish company.
Despite accusations of genocide at the International Court of Justice and human rights violations in Gaza and Lebanon, European nations face growing criticism for their continued arms supplies.
Investigative media outlet Danwatch and Danish tabloid Ekstra Bladet have reported bills of ladings from Maersk, which showed it had shipped armoured combat vehicles and other military hardware to Israel.
Clerc said Maersk does transport military-related cargo, albeit in accordance with all laws.
"When we draw a line between what we accept to transport and what we don't, it's done after a very careful assessment and considering recommendations and regulations," said Clerc. "We realize that our line may not coincide with the wishes of everybody."
Denmark, where Maersk is headquartered, does not currently have an arms embargo and has not imposed any restrictions on sending weapons to Israel.
The plaintiffs argue that the Netherlands has a duty to take all reasonable measures at its disposal to prevent genocide.
