Norwegian pension fund divests from Caterpillar Inc. over Palestinian rights concerns

Kommunal Landspensjonskasse Gjensidig Forsikringsselska (KLP), the largest private pension fund in Norway, has divested its ownership in Caterpillar Inc., a prominent U.S. construction company.

Concerns that the company was involved in the demolition of Palestinian residences in the occupied West Bank motivated the decision.

“Although Caterpillar has shown itself willing to engage in a dialogue with KLP, the company’s responses failed to credibly substantiate its ability to reduce the risk of violating the rights of individuals in situations of war or conflict or of violating international law,” stated Kiran Aziz, the head of responsible investments at the firm, in an interview with Bloomberg.

KLP divested $69 million in Caterpillar shares and bonds earlier this month because of the company’s equipment being used to demolish Palestinian homes and infrastructure to facilitate Israeli settlements, Aziz emphasized.

In addition, she mentioned the accusations that the Israeli army is employing Caterpillar equipment in Gaza.

Last week, the U.N. Office of the High Commissioner for Human Rights identified Caterpillar, along with other corporations, as a supplier of military equipment to Israel.

The office urged investors who have invested in these companies to take action.

The UN statement asserts that companies that supply weapons, parts, components, and ammunition to Israeli forces run the risk of being involved in significant breaches of international human rights and international humanitarian laws.

The U.N. report called upon Western financial institutions and investment firms, such as Bank of America, BlackRock, Citigroup, JP Morgan Chase, Harris Associates, Morgan Stanley, State Farm Mutual Automobile Insurance, and Wells Fargo & Company, among others, to proactively intervene and halt the financing of the large-scale killings of Palestinians in Gaza.

KLP’s decision comes after the Norwegian government, working with Spain and Ireland, recently officially recognized a Palestinian state.

Norway has been a staunch supporter of a Palestinian state for over three decades. On May 28, Foreign Minister Espen Barth Eide stated that Norway’s official recognition of Palestine as a state marks a significant milestone in the relationship between the two countries.

Palestinian media reported on Wednesday that the Israeli army destroyed nine residences in the occupied West Bank, which includes Jerusalem, and another one in the Palestinian territories under occupation since 1948.

In May, Israel carried out 47 demolitions in the West Bank, impacting a total of 66 structures.

These demolitions included 35 residential homes, 5 uninhabited structures, and 15 agricultural and other facilities, as reported by the Wall and Settlement Resistance Commission.