Norway's $2 trillion wealth fund, the largest in the world, announced Monday that it has divested from US construction equipment giant Caterpillar and five Israeli banking groups on "ethics grounds", Reuters reported.
The five Israeli banks named were Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel, and FIBI Holdings. The fund, operated by Norway's central bank, stated these groups were excluded "due to an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict."
The fund's ethics watchdog, the Council on Ethics, said in its assessment that "there is no doubt that Caterpillar's products are being used to commit extensive and systematic violations of international humanitarian law." The council specified that these violations were taking place in both "Gaza and the West Bank", and claimed the company "has also not implemented any measures to prevent such use."
The Norwegian fund had previously announced on August 18 that it would divest from six companies as part of an ongoing ethics review related to the Gaza war and developments in Judea and Samaria. At the time, the fund declined to name the companies until the stakes were sold. The Council on Ethics had initially been scrutinizing Israeli banks for underwriting Israeli settlers' housebuilding commitments in the region.
The August 18 announcement came just a week after the fund sold stakes in 11 other Israeli firms.
The divestment campaign is gaining momentum in Norway ahead of the September 8th elections, with some political parties openly advocating for a full-blown boycott of all Israeli companies.
Despite calls from some parliamentarians, Norway’s legislature voted in June against a proposal to divest from all companies operating in what it refers to as “occupied Palestinian territories.”
The fund, guided by ethical principles set by the Norwegian parliament, has already blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq.
Norway, together with Ireland and Spain announced last May that they intended to recognize the “State of Palestine”.
The announcement came after Ireland, Spain, Slovenia and Malta announced that they would jointly work toward the recognition of a Palestinian state, arguing a two-state solution is essential for lasting peace in the region.