Oslo — Norway’s sovereign wealth fund, the world’s largest with assets exceeding $1.6 trillion, announced Monday that it has excluded US heavy equipment giant Caterpillar and five Israeli banks from its portfolio, citing their direct involvement in violations of international law linked to Israel’s Gaza war and the expansion of illegal settlements in the occupied Palestinian territories.
The decision came after recommendations from the fund’s Council on Ethics, which accused Caterpillar of supplying bulldozers used by Israeli forces in the “widespread and unlawful destruction” of Palestinian homes and infrastructure. The council emphasized that Caterpillar has taken no steps to prevent its machines from being used in operations that violate humanitarian law, concluding that “the risk of future misuse remains unacceptable.”
Alongside Caterpillar, the fund also divested from Bank Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel, and FIBI Holdings. The ethics panel found that these financial institutions played a critical role in facilitating and financing the construction of Israeli settlements in the occupied West Bank, East Jerusalem, and the ongoing genocide of Palestinians in Gaza, both of which are deemed illegal under international law. By providing loans and services for settlement projects, the banks were found to be “contributing to the maintenance of an unlawful situation.”
The scope of the divestment is significant. As of June 30, 2025, the wealth fund held a 1.17% stake in Caterpillar, valued at approximately $2.1 billion. Its combined holdings in the Israeli banks totaled approximately $661 million. Altogether, the decision represents a withdrawal of nearly $3 billion. It marks the first time the fund has blacklisted a major US corporation over complicity in Israel’s actions against Palestinians.
The move underscores growing international scrutiny of corporate complicity in the Gaza war, where Israeli forces have been accused of carrying out indiscriminate attacks on Palestinians, mostly women, children, and Journalists, leveling neighborhoods, and deliberately targeting civilian infrastructure. Rights groups have long warned that Caterpillar bulldozers have been central tools in home demolitions, land seizures, and military attacks against Palestinians.
Norway’s Government Pension Fund Global is widely viewed as a global benchmark for responsible investment. Its exclusions carry symbolic and financial weight, signaling to markets and governments alike that profiteering from the Gaza Genocide, war crimes, and occupation will not go unchallenged.
The announcement drew swift reaction from human rights advocates, who hailed it as a landmark step in holding corporations accountable for aiding Israel’s ongoing genocide in Gaza. Meanwhile, pro-Israel groups criticized the decision as politically motivated, reflecting deepening divisions over the international response to the Gaza Genocide.
According to Reuters, the official statement from Norges Bank Investment Management confirmed that the exclusions were finalized after a thorough assessment and would take immediate effect, reinforcing Norway’s commitment to upholding ethical guidelines in global finance.
