Caterpillar, “Israeli” Banks Blacklisted by Norway Fund

By Staff, Agencies

Norway’s $2 trillion sovereign wealth fund, the world’s largest, has announced it has divested from US construction giant Caterpillar and five "Israeli" banking groups over ethics concerns linked to violations of international humanitarian law.

In a statement on Monday, the fund said the excluded institutions include Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of "Israel", and FIBI Holdings.

The decision followed recommendations from the fund’s ethics watchdog, the Council on Ethics, which concluded there was an “unacceptable risk” that these institutions and Caterpillar were contributing to serious rights violations in situations of war and conflict.

The Council on Ethics stated that Caterpillar’s construction machinery has been used to commit “extensive and systematic violations of international humanitarian law” in Gaza and the West Bank.

It added that the company has failed to implement 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 explained.

The Council also scrutinized the role of "Israeli" banks in underwriting settlement expansion in the occupied West Bank.

The practice was flagged as a direct contribution to violations of Palestinians’ rights under international law.

On August 18, Norway’s wealth fund confirmed divestment from six firms over Gaza and West Bank concerns, after earlier moves to drop 11 "Israeli" companies amid scrutiny of its wartime investments.

The head of Norges Bank Investment Management [NBIM], Nicolai Tangen, stated that the divestment decision was driven by exceptional circumstances, citing the severe humanitarian crisis in Gaza.

He explained that the fund holds stakes in companies operating in a conflict zone, noting the deteriorating conditions in both Gaza and the West Bank.

Tangen noted that this decision would also lessen the oversight burden on the fund's Council of Ethics by reducing the number of "Israeli" companies under its supervision.