Caterpillar (NYSE:CAT) -0.4% in Tuesday’s trading as Norway’s $2T sovereign wealth fund – the world’s largest – said it will divest its stake in the company, citing Israel’s use of its bulldozers to destroy Palestinian property in Gaza and the West Bank, and five Israeli banking groups.
Caterpillar (NYSE:CAT) is the first major U.S. company to be removed in an ongoing review to ensure the Norwegian fund’s investments do not contribute to violations of international humanitarian law.
The move comes after the Norwegian Council on Ethics recommended the exclusion of Caterpillar (CAT) due to its bulldozers being used by Israeli authorities “in the widespread unlawful destruction of Palestinian property.” and that “the company has also not implemented any measures to prevent such use.”
Norway’s sovereign wealth fund held a 1.2% stake in Caterpillar (CAT) valued at $2.4B at year-end 2024, the council said.
Even as Norway’s fund sells stakes in Israeli companies, Israel has enjoyed strong portfolio inflows this year, much of it from the U.S., and the Tel Aviv Stock Exchange’s benchmark index rose 21% in H1 2025.