Dutch pension fund divests from Caterpillar after Gaza concerns

The largest Dutch pension fund ABP said on Wednesday that it had divested from US manufacturing firm Caterpillar following concerns over the alleged use of the company's equipment by Israel in Gaza.

ABP, a major investor in many countries around the world, held a stake in Caterpillar worth approximately 387 million euros ($454m) as of late March.

"Our investment approach must ensure good returns while being socially responsible," said ABP, the pension fund for three million government and education employees in the Netherlands.

"If companies do not meet our criteria, we engage in discussions. If these do not lead to the desired results, ABP will stop investing in these companies," the fund explained in a statement sent to AFP.