Norwegian pension fund divests from Caterpillar over Gaza war risks | News on the Israel-Palestine conflict

KLP sold $69 million worth of shares over fears that bulldozers could contribute to “human rights abuses” against Palestinians.

The Norwegian pension fund KLP has sold its stake of almost 70 dollars in the US industrial group Caterpillar because of the risk that its machines will be used for human rights violations in occupied Palestine.

Norway’s largest private pension manager said in a statement released on Wednesday that the manufacturer of bulldozers and other heavy machinery “could contribute to human rights violations and violations of international law in the West Bank and Gaza Strip.”

For decades, the Israeli military has been converting Caterpillar D9 bulldozers, equipping them with armor and weapons for use in demolishing houses and infrastructure in the occupied territories and in combat scenarios.

KLP, which previously held 728 million Norwegian krone ($69 million) worth of Caterpillar shares, said it was in dialogue with the U.S. company but had not received satisfactory assurances that it could reduce the risk of infringing individuals’ rights.

“Caterpillar has long supplied bulldozers and other equipment used to demolish Palestinian homes and infrastructure to make way for Israeli settlements,” Kiran Aziz, KLP’s head of responsible investment, said in the statement.

“It is also alleged that the company’s equipment is used by the Israeli forces in connection with their military campaign in the Gaza Strip following the Hamas attack on October 7 last year,” she added.

KLP manages around $90 billion. It is believed that the Caterpillar stake was sold on June 17.

In April 2021, KLP excluded companies linked to illegal Israeli settlements in the occupied West Bank, including telecommunications equipment manufacturer Motorola.

Norway and numerous other countries view the settlements as a violation of international law.

Last month, Norway, together with Ireland and Spain, announced its decision to formally recognise a Palestinian state based on pre-1967 borders in the interests of “peace in the Middle East”.

Norwegian Prime Minister Jonas Gahr Store said at the time that there could be no peace in the Middle East without the recognition of a Palestinian state.

“Although Caterpillar has expressed a willingness to engage with KLP, its responses have provided little credibility that the company has taken good steps to reduce the risk of complicity in human rights abuses in war and conflict situations, as well as violations of international law,” Aziz said.