Norway's Sovereign Wealth Fund to Sell Caterpillar and Israeli Bank Holdings Amid Human Rights Concerns.

Norway's sovereign wealth fund plans to sell its stakes in Caterpillar and five Israeli banks due to risks the companies may contribute to human rights violations in war and conflict situations. The fund, valued at nearly $2 trillion, manages Norges Bank Investment Management. The decision is reportedly a result of the fund's efforts to avoid supporting companies that violate human rights.

Title: Norway's Sovereign Wealth Fund Divests from Caterpillar and Israeli Banks Amid Human Rights Concerns

Norway's sovereign wealth fund, Norges Bank Investment Management, has announced its intention to sell stakes in Caterpillar and five Israeli banks due to concerns over potential human rights violations. The move is part of the fund's broader effort to avoid supporting companies involved in such activities. The fund, valued at nearly $2 trillion, manages investments across 8,700 companies worldwide.

According to the fund's executive board, the decision to divest from Caterpillar and the Israeli financial institutions—including First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank, and Bank Hapoalim—is based on the companies' alleged involvement in serious violations of human rights in war and conflict situations [1]. The ethics council of the fund highlighted that Caterpillar's bulldozers have been used without legal justification by Israel to destroy Palestinian properties in both Gaza and the West Bank [1].

The fund's divestment follows a series of similar moves. In August 2023, the fund announced it would divest from six companies linked to the West Bank and Gaza, citing ethical concerns over settlements and military activities [2]. This decision is part of a broader trend among European investors to reassess their investments in Israel due to the ongoing conflict and settlement issues.

The combined holdings in the Israeli banks were valued at roughly $661 million as of July 2023. The fund has previously divested from 17 Israeli firms, whose combined investment value stood at around $143.3 million [1]. The fund's continued quarterly assessments of Israeli firms reflect this broader trend of reassessing investments in light of the ongoing conflict and settlement issues.

The divestment is a significant development in Norway's investment strategy, highlighting the growing importance of ethical considerations in global finance. The fund's actions demonstrate its commitment to avoiding investments that could potentially contribute to human rights abuses, a stance that is likely to resonate with a growing number of investors and financial professionals.

References
[1] https://menafn.com/1109983298/Norways-Sovereign-Wealth-Fund-Drops-Israeli-Banks-Caterpillar
[2] https://www.ynetnews.com/business/article/bk6vy1sygl