Norway’s sovereign wealth fund will exclude U.S. machinery manufacturer Caterpillar and five Israeli banks from its equity portfolio over what it called an “unacceptable risk” that the firms contribute to rights violations. The ethics committee for Norges Bank Investment Management found that the former produced bulldozers that were being used in the “unlawful destruction of Palestinian property,” while the banks had provided financial services necessary for the construction of Israeli settlements in the West Bank. Facing political and public scrutiny, NBIM has said it will not withdraw from all its investments in Israeli firms but review its portfolio to ensure it complies with its ethics mandate.

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The world’s largest sovereign wealth fund has quit its investments in U.S. machinery manufacturer 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.

 

The world’s largest sovereign wealth fund has quit its investments in U.S. machinery manufacturer 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.