Norway's NBIM divests from Caterpillar and 5 Israeli banks over ethics

Norway’s sovereign wealth fund announced on Monday that it has divested from United States construction equipment maker Caterpillar and five Israeli banks over ethics concerns tied to the Israeli-Gaza war and related actions in the West Bank. The decision, taken by Norges Bank Investment Management (NBIM), follows a recommendation from the fund’s Council on Ethics and highlights ongoing efforts to screen holdings for potential violations of international humanitarian law. At stake were a significant position in Caterpillar and a combined holding in the five banks valued at hundreds of millions of kroner, underscoring how the fund’s governance framework translates moral considerations into portfolio moves.

The fund said it had excluded Caterpillar because its products, notably bulldozers, are used by Israeli authorities in what the ethics council calls the widespread unlawful destruction of Palestinian property. The council asserted there is “no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” adding that the company had “not implemented any measures to prevent such use.” Prior to the divestment,...