Norwegian wealth fund offloads Caterpillar stake over bulldozer use in Gaza
By Benjamin Chiou
Date: Tuesday 26 Aug 2025
(Sharecast News) - Norwegian $2trn sovereign wealth fund, Norges Bank Investment Management, has revealed it is selling off shares in Caterpillar, citing evidence that equipment made by the heavy machinery company was being used to destroy buildings in Gaza.
NBIM said late on Monday that it was excluding six companies - comprising five Israeli banking groups and Caterpillar - due to an "unacceptable risk that [they] contribute to serious violations of the rights of individuals in situations of war and conflict".
It said that the decision was based on recommendations from its independent council on ethics over recent months.
Regarding its assessment of Caterpillar, the council said there was evidence that bulldozers made by Caterpillar "are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property."
Caterpillar has "not implemented any measures to prevent such use", it said.
According to Dow Jones, NBIM had held a stake in Caterpillar of just over 1.2% at the end of last year, worth around $2.4bn.
"The Board has not independently assessed all aspects of the recommendations but finds it sufficiently substantiated that the exclusion and observation criteria have been fulfilled," NGIM said in a statement.
The sovereign wealth fund often takes an "active ownership" stance in companies so it can campaign for change on ESG grounds, but said it would not pursue this strategy with Caterpillar.
"Before deciding to exclude a company, Norges Bank shall consider whether other measures, including active ownership, may be better suited. The Board's assessment is that it is not appropriate to use other measures in these cases."
Caterpillar shares were down 0.5% at $430.32 by 1124 ET.
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