The giant wealth fund in Norway comes out six companies on Israel’s concerns

The largest sovereign wealth fund in the world left its investments in American machinery manufacturers Catpeberler Five Israeli banks after reviewing corporate relations with the conflict in the West Bank.

Norges Bang Investment Management (NORGES Investment Management (NORGES Investment Management), which runs the fund on behalf of the Norwegian population and is worth about $ 2 trillion, said on Monday that “there is an unacceptable danger that companies contribute to serious violations of individuals’ rights in war and conflict situations.” He said that the decision was based on recommendations from the Ethics Council.

NBIM said the bombers manufactured by Catpeberler listed in New York “were used by the Israeli authorities in illegal destruction on a large scale of Palestinian property.” NBIM had a $ 2.4 billion share in the company at the end of 2024, which represents about 1.2 % ownership. CNBC Caterpillar called for comment.

NBIM said it will be withdrawn from banks, including The first bank of Israel International And the owner of the majority Vapi holdersand Loms Israel Bank BMand Mizrahi Tefahot Bank and Hapoalim BM Bank. Companies provided financial services necessary for construction activity in Israeli settlements in the West BankNabim said that “he was created in a violation of international law.” CNBC contacted banks to comment.

NBIM has been exposed Increase political and public pressure To get rid of its investments in companies related to the conflict in the Palestinian territories, especially as Norway goes to the polls within two weeks. In an interview with Dagens Industri in Sweden, CEO Nicolai Tangen last week Described The fund faces a “crisis”, and said that he expressed regret that he did not know a case with the fund, which has a stake in an Israeli fighter company, while the strikes escalated on Gaza.

Earlier this month, nbim Declare Its investments in Israeli companies will offer in response to A request from the Ministry of Finance in NorwayWhich has been marked with questions related to The deteriorating situation in Gaza The West Bank. NBIM has also said that she will sell all Israeli companies’ holdings outside their standard index “as soon as possible”, and to end contracts with foreign asset managers in Israel. There were 56 Israeli companies in their standard index at the end of the first half of the year, which decreased to 38 as of August 14.

Meanwhile, the fund determines the budget for its mandate to generate the highest possible net returns, while seeking to avoid any political reaction in the United States, supporting Israel.

around 55 % of stock investments in the fund In the United States, 70 % of its portfolio is allocated to stocks. The weight of the high fund towards the technology sector helped to lead A. 222 billion dollars annual profit Last year, followed by a Loss of 40 billion dollars In the first quarter.

Critics of the calls to the Israeli surrender noticed that the fund is still investing in the origins of other countries that faced accusations of human rights violations, along with the oil sectors and other controversial political sectors.

the Tel Aviv Stock Exchange He has It rose to a record level this year Even when Israel participated in the war on multiple fronts.

NBIM TORND Grande Vice President Tell CNBC on August 12 That the fund in Israel continues through the measurement index.

Despite the recognition of “increased scrutiny” inside Norway, Grande said: “What we do now is not in fact not exceeding, I will not put it in this way, but we are trying to simplify our wallet in Israeli stocks, because we also have moral guidelines.”

“What is our key is that we do not invest in companies that can be in a way, shape or shape, and contribute to violating the moral guidelines that we have,” he said.

“The” NBIM’s exceptions highlighting the inevitable collision between business and human rights, “Anna Nakfalovayte, a research colleague at Oxford University specializing in sovereign wealth funds.

NBIM did not participate in the designated punishment, but it has long applied the criteria in its mandate. Its historical data from the fund showed that ethical screens have barely invested long -term returns so far, and in some cases, she has improved them.

“This was a clear indication that the mandate is being applied globally, whether for lenders in the United States or Israeli lenders.”

Chloe Taylor of CNBC contributed to this story.