Adds response from Expedia in paragraph 6

By Olivia Le Poidevin

GENEVA, Sept 26 (Reuters) - More than 150 businesses, including Airbnb ABNB.O, Booking.com BV, Expedia and TripAdvisor TRIP.O, are operating in Israeli West Bank settlements deemed illegal by the U.N., a report by the organisation's human rights office showed on Friday.

The list, which was previously updated in 2023, now has 68 new names, taking the total to 158; Israel said it unfairly vilifies companies working legally.

New additions include major German cement maker Heidelberg Materials AG HEIG.DE, which said it had disputed the listing, telling Reuters it was no longer active in occupied Palestinian territory. Most of the new companies were domiciled in Israel.

Seven firms previously listed were taken off, including British-registered online travel company Opodo and Spanish-domiciled online travel agent eDreams ODIGEO S.A.; the report said there were reasonable grounds to believe they were no longer involved in the activities that previously justified their inclusion.

All the companies listed were involved in one or more of the 10 activities that the rights office said raised particular human rights concerns.

Travel firm Expedia EXPE.O said, "We connect travelers with independently operated accommodations, including some in disputed areas. These listings are clearly labeled, comply with international laws and sanctions, and undergo enhanced due diligence guided by U.N. standards."

The other accommodation platforms listed in the U.N. database did not immediately respond to Reuters requests for comment.

Israel cites biblical and historical ties to the West Bank to dispute the 2024 ruling by the U.N.'s highest court - which is backed by most of the international community - arguing that the territory is not occupied in legal terms because the land is disputed.

"This database is meant to serve as a blacklist against businesses that have committed no wrongdoing, as there is no general prohibition in international law against business activity in areas of conflict," the Israeli mission in Geneva said in a statement.

UN RIGHTS OFFICE CALLS FOR REMEDIATION

"Where business enterprises identify that they have caused or contributed to adverse human rights impacts, they should provide for or cooperate in remediation through appropriate processes," the report said.

Most of the firms named in the database are domiciled in Israel but it also includes international firms listed in Canada, China and France alongside those from the United States, Germany and other countries.

Scrutiny of companies' operations in the Israeli settlements has increased since Israel's military campaign in Gaza and simultaneous increase in raids in the West Bank that Israel says target militants but which have harmed civilians as well.

The list, which focuses primarily on business activities related to construction, real estate, mining and quarrying, is not exhaustive, as the Office is still to screen more than 300 businesses submitted for assessment.

"This report underscores the due diligence responsibility of businesses working in contexts of conflict to ensure their activities do not contribute to human rights abuses," U.N. Human Rights Chief Volker Türk said. The report also said that states should act to ensure businesses were not contributing to abuses.

Israel and the U.S. have long protested the "disproportionate attention" given to Israel by the Geneva-based Human Rights Council.

Civil society groups say the database, mandated by the council in 2016, is an important tool to ensure transparency around business activities in the West Bank and to prompt companies to rethink their activities.

Israeli settlements have grown in size and number since Israel captured the West Bank in the 1967 war. They stretch deep into the Palestinian territory with a system of roads and other infrastructure under Israeli control, further slicing up the land.

A U.N. Commission of Inquiry on Tuesday found that since October 2023, Israeli policies have demonstrated clear intent to forcibly transfer Palestinians, expand Jewish settlements, and annex the entire West Bank. Israel dismissed the report and said the Commission was pursuing a politically-driven agenda.

U.S. President Donald Trump said on Thursday that he would not allow Israel to annex the West Bank, rejecting calls from some far-right politicians in Israel who want to extend sovereignty over the area and snuff out hopes for a Palestinian state.

(Reporting by Olivia Le Poidevin; Editing by Philippa Fletcher)

((Olivia.LePoidevin@thomsonreuters.com; Reuters Messaging: @LivvyLePoids))