Norway wealth fund divests from Caterpillar over Gaza

OSLO

Norway's sovereign wealth fund said it had divested from U.S. construction equipment firm Caterpillar over purported involvement in rights violations in the Israel-Hamas war.

Fuelled by Norway's vast energy revenues, the fund is the world's biggest, with a value of nearly $2 trillion and investments in more than 8,600 companies across the globe.

The fund had held a 1.2 percent stake in Caterpillar, valued at 24.4 billion krone ($2.4 billion), as of the end of last year.

The Norwegian central bank, which manages the fund, said it had decided to exclude Caterpillar as it posed "an unacceptable risk... to serious violations of the rights of individuals in situations of war and conflict."

The fund said it had based its decision on a recommendation by its council on ethics.

In a statement, the 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 body said.

It added that the company had "not implemented any measures to prevent such use."

The fund said it had also withdrawn from five Israeli firms for financing the construction of illegal settlements in the Israel-occupied West Bank.

They included First International Bank of Israel, FIBI Holdings, Bank Leumi Le-Israel, Mizrahi Tefahot and Bank Hapoalim.