The world’s largest sovereign wealth fund has quit its investments in U.S. machinery manufactuer Caterpillar
and five Israeli banks following a review of the companies’ ties to conflict in the West Bank.
The executive board of Norges Bank Investment Management (NBIM), which manages the fund on behalf of the Norwegian population and is valued at around $2 trillion, said Monday there was an “unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.” The decision was based on recommendations from its ethics council, it said.
NBIM said that bulldozers manufactured by New York-listed Caterpillar were “being used by Israeli authorities in the widespread unlawful destruction of Palestinian property.” NBIM had a $2.4 billion stake in the company at the end of 2024, representing around 1.2% ownership. CNBC has contacted Caterpillar for comment.
NBIM said it will divest from banks including First International Bank of Israel and its majority owner FIBI Holdings, Bank Leumi Le Israel BM, Mizrahi Tefahot Bank and Bank Hapoalim BM. The businesses had provided financial services needed for construction activity in Israeli settlements in the West Bank, which had been “established in violation of international law,” NBIM said. CNBC has reached out to the banks for comment.
