The Norwegian Sovereign Wealth Fund Announces Exclusion of Major Israeli Banks and "Caterpillar" for Ethical Reasons

The Norwegian Sovereign Wealth Fund, the largest in the world with total assets of two trillion dollars, announced on Monday, August 25, its decision to divest from its investments in the American "Caterpillar" group and several major Israeli banks for reasons related to ethical investment standards.

The list of Israeli banks included: "Hapoalim", "Leumi Bank", "Mizrahi Tefahot Bank", and "First International Bank of Israel". This decision comes as part of an in-depth ethical review conducted by the fund in response to the war in Gaza and developments in the West Bank.

The fund had announced on August 18 its intention to withdraw investments from Israeli companies, but refrained at that time from naming them. The divestment is linked to "the war in Gaza and the expansion of settlements in the West Bank", and the decisions came in response to "increasing media and internal pressures".

Commenting on the fund's policy, Norwegian Finance Minister Jens Stoltenberg confirmed that the fund "found the right balance" in fair treatment between ethical commitments and political independence, according to what was reported by the "Financial Times".

It is worth noting that the fund had previously sold stakes in other Israeli companies, such as energy and telecommunications companies linked to the settlements.

This move comes in the context of many European investors taking similar actions, especially against financing or defense companies accused of supporting Israel, as the Norwegian "KLP" pension fund has taken similar steps.

According to a report by "Reuters", these actions come amid rising debate within Norway regarding the political role of the fund, as elections approach that elevate ethical investment standards in the priorities of citizens.