Norges dumping investments over fears of contributing to upkeep of Israel’s so-called ‘settlements.’
1 of 2 | Norway’s moved on Monday to divest billions from Israeli banks and U.S.-based Caterpillar came as nationwide protests in Israeli (seen Aug. 23 in Habima Square in Tel Aviv) gripped the nation over growing public anger at Prime Minister Benjamin Netanyahu’s actions in Gaza and hold on the release of Israeli hostages kidnapped by Iran’s terror proxy Hamas. Photo by Debbie Hill/ UPI | License Photo
The world’s largest sovereign wealth fund in Norway is pulling billions from Israeli banks and divesting the globe’s biggest American-based construction manufacturer over ethical concerns in Gaza.
Norges Bank Investment Management, which is Norway’s central bank, on Monday said that it was excluding Caterpillar Inc. over Israel’s continued use of bulldozers to level and destroy Palestinian-owned property in the West Bank and war-torn Gaza Strip.
“The Board has not independently assessed all aspects of the recommendations but finds it sufficiently substantiated that the exclusion and observation criteria have been fulfilled,” Norges said in a statement on Monday.
In addition, it excluded First National Bank of Israel, Bank Leumi Le-Israel, Mizrahi Tefahot Bank, FIBI Holdings and Bank Hapoalim over construction-related financing that “contribute to the maintenance of Israeli settlements.”
The Texas-based Caterpillar is now the first major U.S. company to be removed from its Norges’ listed investment plan.
The exclusions came as part of the $2 trillion fund’s ongoing review to ensure its investments do not contribute to any violation of international law.
The six entities were excluded due to, wealth fund officials said, “an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.”
The independent NBIM owns around 1.5% of globally listed stock. It operates on a strict set of ethical codes under a public body mandated by the Norwegian parliament in northern Europe’s progressive Scandinavia.
According to the fund’s independent ethics council, there is “no doubt” that Caterpillar products are currently being used to “commit extensive and systemic violations of international humanitarian law.”
Norges is Caterpillar’s eighth largest shareholder, holding more than $2 billion in stock as of June 30.
More than two-thirds of the fund — nearly 70% — is invested in equities and was established in part to invest the profits of Norway’s massive oil and gas sector.
Norway is seeking to be one of the first nations to mine in the Arctic in an ongoing effort which would require hundreds of millions of dollars in heavy machinery to remove minerals from the seabed.
It arrived as nationwide protests in Israel have gripped the nation over growing public anger at Prime Minister Benjamin Netanyahu’s flailing right-wing government’s actions in Gaza and holdover on the release of Israeli hostages kidnapped by Iran’s terror proxy Hamas.
