Norway’s Sovereign Wealth Fund Excludes Caterpillar and Israeli Banks Over Human Rights Violations
Norway’s sovereign wealth fund, the largest globally with nearly $2 trillion in assets, has taken the historic step of excluding U.S. construction giant Caterpillar and five Israeli banks from its investment portfolio, citing “unacceptable risk” of complicity in serious violations of international humanitarian law in Gaza and the occupied West Bank, reports 24brussels.
The fund’s Council on Ethics made this decision after concluding that Caterpillar’s bulldozers are being utilized by Israeli authorities to facilitate the “massive illegal destruction of Palestinian property,” which includes demolitions of homes and forced displacements. Furthermore, the company reportedly has not implemented necessary safeguards to prevent its equipment from being employed in these violations.
The five Israeli banks—Bank Hapoalim, Bank Leumi, Mizrahi Tefahot, First International Bank of Israel, and FIBI Holdings—were also excluded due to their financing of settlement expansion in occupied territories. This practice is regarded as illegal under international law and has been condemned by the United Nations’ top court.
Prior to the divestment, the fund owned a 1.17% stake in Caterpillar valued at $2.1 billion, along with $661 million in the five banks. These exclusions are part of a broader review by the fund to ensure that its investments do not contribute to war crimes or systemic human rights abuses. The ethics committee underscored the “unacceptable risk” posed by these companies in conflict zones.
Earlier this month, the fund had already liquidated its holdings in 11 Israeli companies, and subsequently removed six additional firms linked to the Gaza conflict. While the identities of these companies remain undisclosed as liquidation proceeds, the trend indicates a growing distance of global financial institutions from entities profiting from occupation and repression.
This decision further fuels calls for corporate accountability and underscores international solidarity with Palestinian rights, particularly among nations and movements in the Global South.
