Dutch Pension Fund ABP Divests from Caterpillar Over Ethical Concerns
Dutch pension fund ABP has sold its entire stake in the U.S. firm Caterpillar on ethical grounds. The decision aligns with ABP's stance on socially responsible investing, particularly concerning conflict areas such as Israel-Gaza. The move follows similar action by Norway's sovereign wealth fund.
- Country:
- Netherlands
In a decisive move, Dutch pension fund ABP announced on Wednesday its withdrawal of investments from U.S. construction equipment-maker Caterpillar. The decision was driven by ethical concerns, specifically relating to investments in conflict regions such as Israel-Gaza.
ABP, the Netherlands' largest pension fund managing approximately 524 billion euros, previously held shares in Caterpillar worth around 387 million euros. The fund emphasized the importance of socially responsible investments that promise good returns while adhering to ethical standards.
Following in the footsteps of Norway's sovereign wealth fund—which divested from Caterpillar and five Israeli banks—ABP underscored its commitment to encouraging corporate responsibility and ethical practices. Caterpillar has yet to respond to the divestment news.
(With inputs from agencies.)
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