• Norway's wealth fund divested from Caterpillar over alleged rights violations in Gaza.
• The fund cited "unacceptable risk" related to war and conflict violations.
• Five Israeli banks were also excluded due to their role in supporting illegal settlements.
• The fund’s divestment reflects increasing scrutiny over investments linked to human rights abuses.
• Prime Minister calls for a review following public outcry over controversial investments.

Norway's sovereign wealth fund, the largest globally valued at nearly $2 trillion, announced on Monday that it has divested from the American construction equipment firm Caterpillar as well as five Israeli banks. The decision stems from claims that these entities are implicated in serious human rights violations in the ongoing Israel-Hamas conflict, particularly regarding the destruction of Palestinian property using Caterpillar machinery, according to thejakartapost, bangkokpost, and aljazeera.

The fund held a 1.2 percent stake in Caterpillar valued at approximately 24.4 billion krone ($2.4 billion) at the end of the previous year. The Norwegian central bank, responsible for managing the fund, determined that Caterpillar posed "an unacceptable risk" of contributing to severe human rights violations in armed conflicts. This conclusion was supported by its ethics council, which noted that "bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property," according to thelocal and trtglobal.

In addition to Caterpillar, the fund withdrew investments from five Israeli banks: First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot, and Bank Hapoalim. These banks were excluded due to their financing of Israeli settlements in the occupied West Bank, contributing to the human rights abuses that have prompted substantial international criticism. The ethics council emphasized that these banks provide necessary financial services for the maintenance of these settlements, which are deemed illegal under international law, as stated by middleeasteye and aljazeera.

The Norwegian wealth fund's actions follow severe public scrutiny and pressure from pro-Palestinian activist groups since the beginning of the Israel-Hamas war. Recent reports highlighted the fund’s earlier investments in companies linked to military operations against Palestinians. Prime Minister Jonas Gahr Støre has demanded a review of the fund's investment policies in light of these developments, signaling increased governmental responsiveness to public sentiment regarding investments associated with human rights violations, according to middleeasteye and trtglobal.