(MENAFN) The largest public-sector pension fund in the Netherlands has announced it has divested from Caterpillar, citing concerns about the American heavy equipment company's alleged role in supplying machinery to the Israeli military.

In a statement released on Wednesday, the fund confirmed that it had sold its shares in Caterpillar due to moral objections.

Representing around three million Dutch nationals, the fund — ABP — emphasized that the move was driven by ethical considerations.

ABP, which is not only the largest pension fund in Europe but also ranks fifth globally, manages assets totaling €534 billion ($628.2 billion).

“Our investment approach must ensure good returns while being socially responsible,” the statement explained, highlighting its stance on investments in conflict-affected areas such as Gaza, where Israel is accused of committing genocide against Palestinians.

The fund noted that its portfolio underwent changes in light of ongoing Israeli military operations targeting Palestinians.

At one point, ABP reportedly held approximately $455.3 billion worth of Caterpillar shares before the divestment.

This move follows a similar action taken by Norway’s sovereign wealth fund — valued at $2 trillion — which, on August 26, withdrew investments from Caterpillar and five Israeli financial institutions for ethical reasons.

“There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” stated the Norwegian central bank last month.

Prior to this, on June 30, Norway’s largest pension manager KLP also announced it would refrain from investing in the U.S.-based Oshkosh Corporation and German conglomerate ThyssenKrupp.

Back in 2021, KLP had already pulled investments from around 16 companies in Europe, Israel, and the United States due to their association with unlawful Israeli settlements in the West Bank.

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