BERLIN

The Netherlands’ largest civic pension fund said it sold off its Caterpillar shares due to the alleged involvement of the American equipment manufacturer in supplying the Israeli army, according to a statement issued on Wednesday.

The fund, representing 3 million Dutch citizens, stated that it sold its Caterpillar shares on ethical grounds. ABP is also Europe’s largest and the world’s fifth-largest pension fund, with assets totaling €534 billion ($628.2 billion).

“Our investment approach must ensure good returns while being socially responsible,” the statement read, referring to its policy on investing in conflict zones like Gaza, where Israel has been committing genocide against Palestinians.

The fund said its investment portfolio changed due to the Israeli military attacks on Palestinians. ABP previously held around $455.3 million worth of Caterpillar shares.

The Dutch fund's decision came after Norway's sovereign wealth fund, worth $2 trillion, divested its shares in Caterpillar and five Israeli banking groups on August 26 due to ethical reasons.

“There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” the Norwegian central bank said last month.

Before the sovereign fund, Norway’s largest pension fund KLP said on June 30 that it would not invest in US-based Oshkosh Corporation and German firm ThyssenKrupp. In 2021, the fund had also divested in some 16 companies based in Europe, Israel, and the US due to their links to illegal Israeli settlements in the West Bank.