Norway's Wealth Fund Divests from Caterpillar, Israeli Banks Over Human Rights Concerns
In a major move, Norway's sovereign wealth fund — the world's largest — has divested from five Israeli banks and U.S. construction firm Caterpillar due to what the fund calls serious violations
in the West Bank and Gaza. These violations allegedly contribute to extensive and systematic violations of international humanitarian law
.
Background
The divestment comes as Norway condemns the Israeli regime's atrocities in the Gaza Strip, describing them as a clear violation of international law. The move is seen as a potential precursor to a wider ban on Norwegian companies participating in activities that support settlement expansion in the West Bank.
The wealth fund, worth around $2 trillion, previously held a 1.17% stake in Caterpillar, whose equipment is used by the Israeli Defense Forces. The stakes in the five Israeli banks were valued at a combined $661 million.
The Divested Entities
The five Israeli banks that faced divestment are Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel, and FIBI Holdings. The fund's ethics watchdog, the Council on Ethics, found an unacceptable risk
that these banks contribute to serious violations of individuals' rights in situations of war and conflict.
The Council on Ethics also highlighted that Caterpillar's products are used in situations that result in extensive and systematic violations of international humanitarian law
. Caterpillar's construction equipment has been linked to the destruction of Palestinian property in Gaza and the West Bank.
Implications and Reactions
The divestment has drawn attention to the controversial activities of the Israeli banks and Caterpillar. These entities have been accused of providing financial services and equipment necessary for construction activity in Israeli settlements in the West Bank, including East Jerusalem. These settlements have been deemed illegal under international law.
The move by Norway's wealth fund is likely to spur further debate on the ethics of investment in companies linked to human rights violations. It also underscores the increasing international pressure on Israel over its policies in the West Bank and Gaza.
The Current Situation
The situation in Gaza remains tense, with escalating violence resulting in the loss of life and property. The Gaza Health Ministry reported that at least 64 people have been killed by the Israeli army within a 24-hour period. Meanwhile, Israeli forces continue to push deeper into Gaza City, with threats of further escalation from Israel's far-right Finance Minister Bezalel Smotrich.
The divestment by Norway's wealth fund sends a clear message to the international community, highlighting the urgent need to address human rights violations connected to the ongoing conflict in Gaza and the West Bank.