Norway's wealth fund divests from Caterpillar over human 'rights violations' in Gaza

The world's largest sovereign wealth fund also divested from five Israeli banks

An aerial view of Caterpillar equipment in a lot at the Peterson Cat dealer in San Leandro, California, on 5 August (Justin Sullivan/AFP)

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Norway's sovereign wealth fund, the largest in the world, said on Monday it had divested from American construction equipment manufacturer Caterpillar Inc and five Israeli banks over human rights violations in Gaza.

The $1.9 trillion fund's executive board said in a public statement it had decided to divest from all six entities following advice by its ethics council, which said they all “contribute to serious violations of the rights of individuals in situations of war and conflict".

The ethics council went on to say that “bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property".

“There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law," the statement said, adding that the company had not implemented any measures to prevent its use for these purposes and that the council considers "an unacceptable risk that Caterpillar is contributing to serious violations of individuals’ rights in war or conflict situations”.

In its assessment, the ethics council said the Israeli military had utilised bulldozers manufactured by Caterpillar for decades, with only a brief pause between 2024 and 2025. These machines were supplied to Israel through the United States foreign military sales programme and then modified by other parties for “military purposes”.

The fund held a 1.2 percent stake in Caterpillar, valued at $2.4bn as of 31 December. It is a blow for the company, which reported a 21 percent decline in profits in its second-quarter earnings, as it deals with unfavourable manufacturing costs resulting from higher tariffs.

Last year, Norway's largest private pension fund also divested its stake in Caterpillar over its involvement in rights abuses in the occupied Palestinian territories.

Oslo-based KLP sold its shares and bonds in the company, worth $69m in June of last year.

Middle East Eye contacted Caterpillar for comment, but did not receive a response by the time of publication.

Norway sovereign wealth fund drops investments in 11 Israeli companies

The fund also said it withdrew from five Israeli banks financing the construction of illegal settlements in the occupied West Bank. These companies included First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot and Bank Hapoalim.

The stakes in the five Israeli banks were valued at a combined $661m as of 30 June, according to fund data.

Norway’s wealth fund is fuelled by the country's vast oil revenues, with a value of $1.9 trillion and investments in more than 8,600 companies across the globe.

Its divestment from the banks means it has now halved its holdings in Israeli companies in just a few weeks.

Earlier this month, the fund said it was divesting from 11 Israeli companies following a report in the leading Norwegian newspaper, Aftenposten, which said it had invested in an Israeli jet engine maker that was providing parts for Israeli fighter jets killing people in Gaza, leading to a widespread public outcry.

Consequently, Prime Minister Jonas Gahr Store asked Finance Minister and former Nato secretary general Jens Stoltenberg for a review. Pressure from pro-Palestinian activists increased on the fund since the start of Israel’s war on Gaza in October 2023.

The Labour Party-led government spent months resisting pressure, with Norway’s parliament in June rejecting a proposal to divest from all Israeli military companies operating in Gaza and the occupied West Bank.

According to the Norges Bank Investment Management website, the aim of the fund is “to ensure a long-term management of revenue from Norway’s oil and gas resources, so that this wealth benefits both current and future generations”.

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