Norway dumps stake in Caterpillar over West Bank links

Norges’ ethics council claims Caterpillar’s D9 bulldozers are used in the ‘destruction of Palestinian property’ - AMIR COHEN/REUTERS Norway’s wealth fund has dumped its £1.8bn holding in Caterpillar over concerns Israel is destroying Palestinian homes with its bulldozers.

Norges unveiled the move on Tuesday after its ethics council claimed that Caterpillar’s D9 bulldozers were being used in the “unlawful destruction of Palestinian property” on the West Bank and in Gaza.

“In the council’s assessment, there is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humani­tarian law. The company has also not implemented any measures to pre­vent such use”, the ethics council said.

Caterpillar is the largest maker of construction equipment in the world and best known for its distinctive yellow and black bulldozers as well as its steel toe-capped beige shoes.

According to a 12-page report by Norges’ ethics council, Caterpillar sells its D9 bulldozers to the US government, which then passes them on to the Israeli Defence Force (IDF).

Although Caterpillar protested to Norges that it sold the bulldozers to the US – and not the IDF – the Norwegian fund claimed the company was “fully aware that the equipment will be transferred to the IDF”.

The exit makes the US bulldozer-maker the first Western company to be swept up in the fund’s efforts to distance itself from Israel’s war in Gaza and West Bank settlements.

Scrutiny over Israeli investments

Norway’s wealth fund has come under intense domestic scrutiny and pressure over its Israeli investments as Benjamin Netanyahu’s bombardment of Gaza intensified.

On Monday, it announced it would also dump its investments in five Israeli banks.

The sovereign wealth fund’s board said it would exclude Caterpillar and the banks because of the “unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.”

“As deliveries of the relevant machinery to Israel are now set to resume, the council considers there to be an unacceptable risk that Caterpillar is con­tributing to serious violations of individuals’ rights in war or conflict situations,” the ethics council said.

Israel has launched a major expansion of illegal settlements in the occupied West Bank under Mr Netanyahu, with the government giving the final approval for plans for 3,400 new homes earlier this month.

Bezalel Smotrich, the far-Right finance minister, said plans for a Palestinian state were “being erased” as he unveiled the controversial project.

Norway’s sovereign wealth fund has nearly halved the number of Israeli firms it invests in from 61 to 33 in only a few weeks after the public backlash.

Story ContinuesIt owns around 1.5pc of all shares in the world’s listed companies, after investing the nation’s huge oil and gas surplus revenues since 1990.

The move to divest comes after it emerged that the fund had significantly increased its stake in Israeli jet engine parts manufacturer Bet Shemesh Engines between 2023 and 2024.

The Norwegian daily Aftenposten, which first reported the story earlier in August, claimed that Bet Shemesh Engines maintains Israeli planes used to bomb Gaza.

The revelation prompted political leaders, including the Norwegian prime minister, to raise the pressure on the fund to dump shares in companies linked to the war in Gaza and illegal West Bank settlements.

Some of the smaller political parties have called for Nicolai Tangen, the chief executive, to step down and dump all shares in any Israeli company.

The latest move to sell shares in Caterpillar and the five Israeli banks comes as international pressure grows on Mr Netanyahu to enter a ceasefire.

The Israeli leader faced fierce international criticism after his forces killed 20 people, including journalists and aid workers, in an attack on the Nasser hospital in Khan Younis on Monday.

Protestors are meanwhile staging a “day of struggle” in Israel to demand that the government reach a ceasefire deal with Hamas and bring home the hostages.

Caterpillar was contacted for comment.

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