In the latest demonstration of growing Western opposition to Israel’s devastating campaign in Gaza, the world’s largest sovereign wealth fund on Monday announced it is divesting from Caterpillar, over concerns that the Israel Defense Forces are using Caterpillar bulldozers to violate human rights. Norway’s $2 trillion wealth fund — which springs from the country’s oil wealth — held a 1.17% stake in the Texas-headquartered company, valued at $2.1 billion as of June 30.
While Caterpillar’s products are classified as “construction” equipment, the IDF regularly uses massive, armored Caterpillar D-9 bulldozers to destroy homes and other civilian infrastructure — not only in Gaza, but the occupied West Bank as well.
Sovereign wealth funds are rare among the world’s democracies. In Norway, divestment decisions are largely driven by the recommendations of an independent ethics council established by the Finance Ministry. After evaluating Caterpillar, the Council on Ethics reported:
“There is an unacceptable risk that Caterpillar is contributing to serious violation of the rights of individuals in situations of war or conflict… Bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property...There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law. The company has also not implemented any measures to prevent such use.”
Hellbound and Down 