Oslo: The world's largest sovereign wealth fund, Norges Bank Investment Management, announced late Monday that it has removed five Israeli banks and US-based Caterpillar from its portfolio. The fund's executive board has decided to divest from First International Bank of Israel and its holding company FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank, Bank Hapoalim, and Caterpillar.

According to Anadolu Agency, the decision was made due to "an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict," as stated by the fund. The fund's ethics council highlighted that Caterpillar bulldozers had been unlawfully used by Israel to demolish Palestinian homes in Gaza and the West Bank. The council stated, "There is no doubt that Caterpillar's products are being used to commit extensive and systematic violations of international humanitarian law."

The ethics council further elaborated that the Israeli banks provided essential financial services, which are a prerequisite for construction activities in Israeli settlements in the West Bank. This move underscores the fund's commitment to ethical investment principles.

The fund, valued at approximately $2 trillion, had previously removed 17 Israeli companies from its portfolio, which collectively had a total value of $143.3 million. This latest action adds to the mounting pressure on Israel, which is facing widespread condemnation for its ongoing war on Gaza. The conflict has resulted in nearly 63,000 deaths since October 2023 and has triggered a severe famine in the region.