Norway’s $2 trillion wealth fund, the world’s largest, mentioned on Monday it has divested from US development gear group Caterpillar in addition to 5 Israeli banking teams on ethics grounds.
The 5 banks are Hapoalim, Financial institution Leumi, Mizrahi Tefahot Financial institution, First Worldwide Financial institution of Israel and FIBI Holdings, the fund mentioned in a press release.
The six teams have been excluded “because of an unacceptable danger that the businesses contribute to severe violations of the rights of people in conditions of struggle and battle,” mentioned the fund, which is operated by Norway’s central financial institution.
Caterpillar, Hapoalim, First Worldwide Financial institution of Israel and Financial institution Leumi didn’t instantly reply to emailed requests for remark. Mizrahi Tefahot and FIBI Holdings weren’t reachable exterior of regular enterprise hours.
Previous to its divestment, the fund held a 1.17% stake in Caterpillar valued at $2.1 billion as of June 30, its data confirmed.
The stakes within the 5 Israeli banks have been valued at a mixed $661 million, additionally as of June 30, based on fund information.
Norway’s Finance Minister Jens Stoltenberg delivers remarks throughout an Oval Workplace assembly with Norway’s Prime Minister Jonas Gahr Retailer (R) and US President Donald Trump within the Oval Workplace on the White Home on April 24, 2025, in Washington, DC. (CHIP SOMODEVILLA / Getty Pictures through AFP)
The fund’s ethics watchdog, referred to as the Council on Ethics, mentioned that “within the council’s evaluation, there isn’t a doubt that Caterpillar’s merchandise are getting used to commit intensive and systematic violations of worldwide humanitarian regulation.”
Bulldozers manufactured by Caterpillar “have been being utilized by Israeli authorities within the widespread illegal destruction of Palestinian property,” it mentioned.
The violations have been going down each in Gaza and the West Financial institution, the council mentioned, including that “the corporate has additionally not applied any measures to prevent such use.”
“As deliveries of the related equipment to Israel at the moment are set to renew, the Council considers there to be an unacceptable danger that Caterpillar is contributing to severe violations of people’ rights in struggle or battle conditions.”
The council, a public physique arrange by the Ministry of Finance, checks that corporations within the portfolio of the fund meet moral tips set by Norway’s parliament. The fund is invested in some 8,400 firms worldwide.
It makes suggestions to the board of the central financial institution, which has the ultimate say. The board agreed with the council’s advice.
A Caterpillar tractor clearing land for Israeli houses within the West Financial institution, in 2012. (Oren Nahshon/Flash90)
The Norwegian fund introduced on August 18 that it might divest from six firms as a part of an ongoing ethics evaluate over the struggle in Gaza and developments within the West Financial institution, however declined on the time to call any teams till the stakes have been offered.
On the banks, the ethics watchdog had initially been scrutinizing Israeli banks’ apply of underwriting Israeli settlers’ housebuilding commitments within the area.
On Monday, the council mentioned all of the banks excluded had, “by offering monetary companies which are a mandatory prerequisite for development exercise in Israeli settlements within the West Financial institution, together with East Jerusalem … contributed to the upkeep of Israeli settlements.”
Earlier this month, the fund mentioned it was promoting out of 11 Israeli firms following reviews that it had invested in an Israeli jet engine maker even because the struggle in Gaza raged.
The revelations led Norwegian Prime Minister Jonas Gahr Retailer to ask Finance Minister and former NATO secretary-general Jens Stoltenberg for a evaluate.
