KLP sold a $69 million stake over fears the bulldozers contributed to “human rights abuses” against Palestinians.
Norwegian pension fund KLP has sold its nearly $70 stake in US industrial group Caterpillar over the risk of its equipment being used to violate human rights in occupied Palestine.
Norway's largest private pension manager said in a statement released Wednesday that the maker of excavators and other heavy machinery could be “contributing to human rights abuses and violations of international law in the West Bank and Gaza.”
For decades, Israel's military has converted Caterpillar D9 bulldozers, equipped with armor and weapons, for use in the demolition of homes and infrastructure in the occupied territory, as well as in combat scenarios.
KLP, which previously owned Caterpillar shares worth 728 million Norwegian crowns ($69 million), said it had entered into dialogue with the US company but had not received satisfactory assurances that it would be able to reduce the risk of violating the people rights.
“Caterpillar has long supplied excavators and other equipment that have been used to demolish Palestinian homes and infrastructure to clear the way for Israeli settlements,” Kiran Aziz, head of responsible investments at KLP, said in the statement.
“It has also been alleged that the company's equipment is being used by the Israel Defense Forces in connection with its military campaign in Gaza following the Hamas attack on October 7 last year,” he added.
KLP has around $90 billion under management. It suggests that Caterpillar's stake was sold on June 17.
In April 2021, KLP delisted companies linked to illegal Israeli settlements in the occupied West Bank, including telecommunications equipment giant Motorola.
Norway, like other countries, considers the settlements to be a violation of international law.
Last month, Norway joined Ireland and Spain in announcing its decision to formally recognize a Palestinian state based on pre-1967 borders in the interest of “peace in the Middle East.”
Norwegian Prime Minister Jonas Gahr Store said at the time that there could be no peace in the Middle East if there was no recognition of the Palestinian state.
“Although Caterpillar has expressed its willingness to engage in dialogue with KLP, the responses gave little credibility to the fact that they have taken good steps to reduce the risk of complicity in violations of human rights in situations of war and conflict, as well as international law.” Aziz stated. saying.
