Norway's Wealth Fund Cuts Ties with 5 Israeli Banks, Caterpillar

(MENAFN) Norges Bank Investment Management, the largest sovereign wealth fund globally, announced on Monday night it has pulled investments in five Israeli banks and U.S.-based Caterpillar. This move marks a significant shift in its portfolio as it continues to distance itself from companies tied to alleged human rights violations.

The fund's executive board disclosed that the divestment includes First International Bank of Israel and its parent FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank, Bank Hapoalim, and Caterpillar. The decision was attributed to an "unacceptable risk" that these entities might be linked to violations of individuals' rights in conflict zones, the fund stated in a formal release.

Norges Bank's ethics council accused Caterpillar bulldozers of being used by Israel to demolish Palestinian homes in both Gaza and the West Bank. The council emphasized that "there is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law."

In addition, the council argued that the Israeli banks provided crucial financial support for the construction of settlements in the West Bank, further solidifying the fund's stance on human rights concerns.

With assets totaling approximately $2 trillion, the fund had previously divested from 17 Israeli companies, worth $143.3 million, over similar ethical concerns. As Israel’s actions in Gaza face increasing international scrutiny, the situation remains dire, with nearly 63,000 fatalities reported since October 2023 and a severe famine worsening the crisis.

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