First Action Against a U.S. Company! Norwegian Sovereign Wealth Fund Divests Caterpillar Over Israel-Palestine Dispute
Recently, the fund has been excluding Israeli companies involved in the occupation of the West Bank or the conflict in the Gaza Strip from its investment portfolio. However, this is the first time it has targeted a U.S. company, making Caterpillar the first non-Israeli company to be divested for this reason.
Caterpillar, founded in 1925 and headquartered in Texas, USA, is a globally renowned heavy machinery manufacturer. It is a leading global producer of engineering machinery, mining equipment, off-road diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
It is worth noting that Caterpillar is also one of the 30 components of the Dow Jones Industrial Average, a blue-chip stock index in the U.S. market, and is a highly representative company in the manufacturing and processing sector. As of Monday's market close, its total market capitalization exceeded $200 billion.
The $2 trillion Norwegian Oil Fund was once one of Caterpillar's top ten shareholders, holding a 1.2% stake worth $2.1 billion as of the end of June. The fund has now completely divested its holdings.
Shortly before this, advisors to the Norwegian sovereign wealth fund accused Israel of using products from this U.S. engineering equipment manufacturer to "carry out large-scale, systematic violations of international humanitarian law," including the destruction of Palestinian properties.
Last month, CCTV News reported that the Israeli Ministry of Defense announced the arrival of a shipment of dozens of Caterpillar D9 military bulldozers and other equipment from the United States to the port of Haifa, Israel. Amir Baram, Director-General of the Israeli Ministry of Defense, went to the port to receive the shipment.
The ethics committee of the Norwegian fund stated that Caterpillar's bulldozers were used by Israeli authorities for large-scale illegal demolition of Palestinian properties. "There is no doubt that its products are being used to carry out large-scale, systematic violations of international humanitarian law. The company has also taken no measures to prevent this use."
On Monday, former NATO Secretary-General and Norwegian Finance Minister Jens Stoltenberg stated in an interview that, despite facing "dilemmas" and "difficult choices," the fund has found the "right balance" on the Israel issue.
