Norway's Wealth Fund Drops Caterpillar, Israeli Banks Over Ethics Concerns

Norway's massive $2 trillion wealth fund, the world's largest, has decided to divest from the U.S. company Caterpillar and five Israeli banking institutions due to alleged ethical violations. This move underscores the fund's commitment to ethical investing, aligned with guidelines set by the Norwegian parliament.

The fund's ethics watchdog, the Council on Ethics, cited the use of Caterpillar's machinery in what it described as violations of international humanitarian law. The council pointed a finger at the use of Caterpillar bulldozers by Israeli authorities for demolishing Palestinian property in conflict zones, including Gaza and the West Bank.

Additionally, five Israeli banks, including Hapoalim and Bank Leumi, faced scrutiny for their financial involvement in Israeli settlements in the West Bank. The council expressed that these financial services were vital for the construction activities contributing to the settlements, deemed illegal by the United Nations.

(With inputs from agencies.)