Norway’s $2 trillion wealth fund, the world’s largest, said on Monday it has divested from US construction equipment group Caterpillar as well as five Israeli banking groups on ethics grounds.
The five banks are Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel and FIBI Holdings, the fund said in a statement.
The six groups were excluded “due to an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict,” said the fund, which is operated by Norway’s central bank.
Caterpillar, Hapoalim, First International Bank of Israel and Bank Leumi did not immediately reply to emailed requests for comment. Mizrahi Tefahot and FIBI Holdings were not reachable outside of normal business hours.
Prior to its divestment, the fund held a 1.17% stake in Caterpillar valued at $2.1 billion as of June 30, its records showed.
The stakes in the five Israeli banks were valued at a combined $661 million, also as of June 30, according to fund data.
Norway’s Finance Minister Jens Stoltenberg delivers remarks during an Oval Office meeting with Norway’s Prime Minister Jonas Gahr Store (R) and US President Donald Trump in the Oval Office at the White House on April 24, 2025, in Washington, DC. (CHIP SOMODEVILLA / Getty Images via AFP)
The fund’s ethics watchdog, called the Council on Ethics, said that “in the council’s assessment, there is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law.”
Bulldozers manufactured by Caterpillar “were being used by Israeli authorities in the widespread unlawful destruction of Palestinian property,” it said.
The violations were taking place both in Gaza and the West Bank, the council said, adding that “the company has also not implemented any measures to prevent such use.”
“As deliveries of the relevant machinery to Israel are now set to resume, the Council considers there to be an unacceptable risk that Caterpillar is contributing to serious violations of individuals’ rights in war or conflict situations.”
The council, a public body set up by the Ministry of Finance, checks that firms in the portfolio of the fund meet ethical guidelines set by Norway’s parliament. The fund is invested in some 8,400 companies worldwide.
It makes recommendations to the board of the central bank, which has the final say. The board agreed with the council’s recommendation.
A Caterpillar tractor clearing land for Israeli homes in the West Bank, in 2012. (Oren Nahshon/Flash90)
The Norwegian fund announced on August 18 that it would divest from six companies as part of an ongoing ethics review over the war in Gaza and developments in the West Bank, but declined at the time to name any groups until the stakes were sold.
On the banks, the ethics watchdog had initially been scrutinizing Israeli banks’ practice of underwriting Israeli settlers’ housebuilding commitments in the region.
On Monday, the council said all the banks excluded had, “by providing financial services that are a necessary prerequisite for construction activity in Israeli settlements in the West Bank, including East Jerusalem … contributed to the maintenance of Israeli settlements.”
Earlier this month, the fund said it was selling out of 11 Israeli companies following reports that it had invested in an Israeli jet engine maker even as the war in Gaza raged.
The revelations led Norwegian Prime Minister Jonas Gahr Store to ask Finance Minister and former NATO secretary-general Jens Stoltenberg for a review.
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