Norway’s sovereign wealth fund has taken a major step. Norway wealth fund divest Caterpillar and five Israeli banks over Gaza marks its latest move in ethical investing. The decision came from the fund’s ethics council.
The fund cited “an unacceptable risk” that these companies supported serious rights violations during the Gaza conflict. It acted to prevent contributing to humanitarian harm.
The first firm excluded is Caterpillar. The council said its bulldozers were used by Israeli forces to destroy Palestinian homes in Gaza and the West Bank. Norway wealth fund divest Caterpillar and five Israeli banks over Gaza underscores the fund’s conviction that Caterpillar failed to prevent misuse of its equipment.
The fund also divested from five major Israeli banks. These are First International Bank of Israel, Bank Leumi, Mizrahi Tefahot Bank, FIBI Holdings, and Bank Hapoalim. The council found they helped fund settlement construction in occupied territories. That contributes to violations of international law.
This move involves a significant financial withdrawal. The fund held about $2.1 billion in Caterpillar shares and $661 million in the five banks. The total divestment is close to $3 billion.
Caterpillar becomes the first major U.S. firm excluded on such humanitarian grounds. The action reflects the fund’s ethical mandate, set by Norway’s parliament, and reinforced by an independent council.
This divestment follows larger global scrutiny. Earlier, the fund had dropped 11 Israeli firms related to the Gaza conflict under “extraordinary circumstances.” The latest exclusions reaffirm a growing stance against investments linked to human rights abuses.
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