Norwegian wealth fund divests from Israel’s banking sector
Four largest banks targeted for financing settlements; Caterpillar shares also sold.
The Norwegian sovereign wealth fund continues to divest from Israel. The Government Pension Fund Global (GPFG) has sold its holdings in Israeli banks, with a total value of approximately NIS 2 billion, in line with the recommendation of its ethics board.
The fund, which manages assets worth $2 trillion, announced the sale and justified the move on “ethical considerations” tied to the situation in the region. It sold stakes in four of Israel’s largest banks: Bank Hapoalim, Bank Leumi, Mizrahi-Tefahot, and First International Bank of Israel.
According to the ethics board, these banks directly supported the construction of illegal settlements by providing financial services essential to the activity. The joint holding in the four banks was valued at $661 million as of July.
The ethics board is a public body established by the Norwegian Ministry of Finance to ensure that companies in the fund’s portfolio comply with ethical standards set by the Norwegian Parliament. The board makes recommendations to the central bank’s board of directors, which makes final decisions. In this case, the board of directors accepted the recommendation.
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Alongside the Israeli banks, the Norwegian fund also divested from U.S. engineering giant Caterpillar, in which it held a 1.17% stake worth $2.1 billion. The ethics board cited Caterpillar’s supply of bulldozers to Israel, allegedly used to demolish homes in Gaza and the West Bank “in widespread and systematic violation of international law.”
Norwegian media previously reported that since July the fund has sold shares in 17 Israeli companies for similar reasons, including Bubblel, Rami Levy, and Retailers.
