Norway's $2-trillion sovereign wealth fund excluded Caterpillar due to an unacceptable risk that the company's products contribute to serious violations of individual rights in situations of war and conflict. The fund also divested from five Israeli banks after an ethics council found their financial services enabled construction activity in settlements in the West Bank and East Jerusalem. The ethics council determined that Caterpillar bulldozers are used by Israeli authorities in widespread unlawful destruction of Palestinian property and that the company had not implemented measures to prevent such use. Prior to exclusion, the fund held a 1.17% stake in Caterpillar valued at $2.1bn.
Norway's $2-trillion wealth fund, the largest in the world, has divested from US construction equipment giant Caterpillar over the firm's purported involvement in rights violations perpetrated by the Israeli military in Gaza and the occupied West Bank. The Norwegian central bank said on Monday that it had decided to exclude Caterpillar from the fund, which it manages, due to an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.
In a statement, the ethics council said 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 council said. It added that Caterpillar had not implemented any measures to prevent such use by Israeli authorities.
The fund also announced that it had divested from five Israeli banks, based on the recommendation of its council on ethics. Prior to its divestment, the fund held a 1.17 percent stake in Caterpillar valued at $2.1bn as of June 30, according to fund data. The five banks named in the fund's statement were Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel and FIBI Holdings.
#divestment #caterpillar #norwegian-wealth-fund #israeli-settlements #international-humanitarian-law
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