Norway’s $2 trillion sovereign wealth fund has blacklisted Caterpillar and five major Israeli banks, citing “serious human rights violations” linked to the Gaza war and Judea-Samaria.
The world’s largest sovereign wealth fund, Norway’s $2 trillion Government Pension Fund Global, announced Monday it has divested from US construction giant Caterpillar and five Israeli banking groups, accusing them of contributing to “serious violations of human rights” in conflict zones.
The five Israeli banks targeted are Hapoalim, Bank Leumi, Mizrahi Tefahot Bank, First International Bank of Israel, and FIBI Holdings.
In a blistering statement, the fund’s Council on Ethics declared:
“There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law in Gaza and the West Bank. The company has not taken measures to prevent such use.”
The watchdog also faulted Israeli banks for financing construction projects in Judea and Samaria, which it claimed violate international law.
This latest move follows the fund’s August 18 announcement of divestments from six additional companies tied to Israel, part of an escalating campaign ahead of Norway’s September 8 elections, where left-wing parties are calling for a full boycott of all Israeli firms. Just last week, the fund shed holdings in 11 Israeli companies, including energy and telecom groups such as Paz and Bezeq.
While Norway’s parliament voted in June against a blanket divestment from all companies active in “occupied Palestinian territories,” momentum for sanctions is growing. Oslo has already joined Ireland and Spain in pledging to recognize a Palestinian state, positioning itself as one of Europe’s most aggressive critics of Israel’s war policy.
The divestment sends shockwaves through global markets—not only for its financial weight, but also for the political message it delivers. The Norwegian fund is widely seen as a bellwether for ethical investing worldwide, and its decision could encourage other institutions to follow suit.
