In a decisive move reflecting the growing weight of ethical investment standards, Norway’s sovereign wealth fund, valued at over $2 trillion and recognized as the largest of its kind globally, has divested from the U.S. corporation Caterpillar and five prominent Israeli banks.
The decision, announced in late August, was based on what the fund described as “serious ethical concerns,” particularly regarding human rights violations and breaches of international law in the occupied Palestinian territories.
The Israeli banks targeted by the divestment include Bank Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, the First International Bank of Israel, and its parent company FIBI Holdings.
These institutions have long been criticized for their financial involvement in illegal Israeli colonialist expansion across the West Bank, activity condemned by the United Nations and numerous international legal bodies as a violation of international law.
The Norwegian Council on Ethics, which advises the fund on responsible investment, determined that these banks provide critical financial services that enable construction and infrastructure development in colonies built on occupied land.
Their operations, the Council concluded, directly contribute to the entrenchment of Israeli control over Palestinian territory.
Caterpillar, a U.S.-based manufacturer of heavy machinery, was also removed from the fund’s portfolio due to its equipment being used in the demolition of Palestinian homes and civilian infrastructure.
The Council cited repeated instances in which Caterpillar bulldozers were deployed by Israeli forces in operations that led to the destruction of property in Gaza and the West Bank, actions that may constitute violations of international humanitarian law.
This divestment is part of a broader effort by Norway’s sovereign fund to align its investments with ethical principles mandated by the Norwegian parliament.
Over the past year, the fund has intensified its scrutiny of companies linked to the Israeli occupation, reportedly excluding more than 20 firms with direct or indirect ties to colonialist activity.
The move reflects mounting pressure from civil society organizations and political figures in Norway to ensure that public funds are not complicit in systemic human rights abuses.
Norwegian Finance Minister Jens Stoltenberg noted that the fund’s ethical oversight mechanisms are being reinforced, with faster evaluations and closer coordination between the Council on Ethics and Norges Bank Investment Management.
While some political factions have called for a full withdrawal from all companies connected to Israeli colonialism, the parliament has opted for a case-by-case approach, targeting firms whose operations clearly violate Norway’s ethical guidelines.
This decision has reignited debate across Europe about the role of sovereign wealth funds in advancing justice and accountability through financial leverage.
It also strengthens global campaigns demanding corporate responsibility in conflict zones, particularly in relation to the Israeli-Palestinian struggle.
