Wealth fund sells Caterpillar shares over Israel allegations

Caterpillar’s vast indoor stand proved to be one of the major attractions for visitors to Bauma 2025 (Image: Ervin Bedeli)

The Norges Bank Executive Board, reported to be a top ten shareholder in Caterpillar, held 1.2% of shares in the OEM, which equates to approximately US$2 billion.

In a statement The Norges Bank Executive Board said that it has decided to exclude several companies – including Caterpillar – from its investments, “due to an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict, ref. the conduct-based criterion § [section] 4 b in the Guidelines for Observation and Exclusion from the Government Pension Fund Global.”

The Norwegian fund said that the decision was based on recommendations from its Council on Ethics of 25 June and 2 July 2025. It related to the company’s bulldozers allegedly being used by the IDF (Israel Defense Force) in actions against civilians.

According to Norges Bank, the Council on Ethics held two meetings with representatives of Caterpillar’s management. During a teleconference on 19 November 2024, Caterpillar explained that the company had never sold the bulldozers in question directly to the IDF, but that the equipment was sold to the US authorities via the FMS (Foreign Military Sales) programme.

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The company confirmed that it was aware that the vehicles had been transferred to Israel and that, with the possible exception of a couple of vehicles previously delivered to Egypt, Israel was the only nation to receive D9 bulldozers supplied via the FMS programme. The company also underlined that these bulldozers were supplied by Caterpillar as civilian heavy machinery and that they were modified for military purposes by other parties.

The Council subsequently inquired about the measures Caterpillar was taking to ensure that its products were not being used in violation of international humanitarian law or human rights. The company responded that it was difficult to maintain oversight of how its equipment was used once delivered.

Regarding sales through the Foreign Military Sales (FMS) programme, Caterpillar referred to the evaluations conducted by US authorities, noting that the imposition of possible delivery restrictions demonstrated that such assessments were indeed carried out and had tangible effects.