Norway's largest private pension fund divests from Caterpillar over involvement in Gaza destruction

Norway's largest pension fund, KLP, has recently made the decision to sever ties with Caterpillar, a US-based industrial manufacturing group, due to allegations of the company's involvement in the construction of illegal settlements and human rights violations in the West Bank and Gaza by Israel's armed forces. KLP divested its $69 million stake in Caterpillar after the company failed to provide satisfactory assurances that it was taking action to prevent its equipment from being used against Palestinians in violation of international law. This move is part of KLP's ongoing efforts to exclude companies from its portfolio that are associated with human rights violations, environmental harms, corruption, and other unacceptable risks. The decision to cut ties with Caterpillar is in line with KLP's previous actions of divesting from companies linked to illegal Israeli settlements and the separation wall in the West Bank. Allegations against Caterpillar in relation to the Israeli occupation of Palestinian territories have been ongoing for decades, with reports indicating that the company's equipment has been used to demolish Palestinian homes and infrastructure to facilitate the construction of illegal Israeli settlements. The international community, including Norway, has condemned the Israeli occupation as illegal under international law. Despite efforts to engage with Caterpillar and address concerns about its role in human rights abuses, KLP found that the company was unable to demonstrate meaningful changes to reduce the risk of its equipment being used in violation of humanitarian law. The use of weaponized bulldozers in the occupied Palestinian territory has raised alarms among United Nations agencies and NGOs, prompting calls for states to cease sending military equipment to Israel. KLP's decision to divest from Caterpillar underscores the fund's commitment to ethical investing and upholding human rights standards. The divestment from Caterpillar is part of a broader international consensus that condemns West Bank settlements as violations of international law. The involvement of companies in illegal actions in the occupied territories, such as Caterpillar's alleged role in human rights abuses, has drawn scrutiny and calls for accountability. KLP's stance against companies linked to illegal Israeli actions reflects a commitment to ethical investing and standing against violations of international law in conflict zones like the West Bank and Gaza.