ISTANBUL

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 said it decided to divest from First International Bank of Israel and its holding company FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank, Bank Hapoalim and Caterpillar.

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,” the fund said in a statement.

The fund’s ethics council said Caterpillar bulldozers had been unlawfully used by Israel to demolish Palestinian homes in Gaza and the West Bank.

“There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” it said.

The council added that the Israeli banks provided financial services that are a prerequisite for construction activities in Israeli settlements in the West Bank.

The fund, worth around $2 trillion, previously removed 17 Israeli companies from its portfolio, which had a total value of $143.3 million.

Israel faces mounting condemnation for its war on Gaza, which has killed nearly 63,000 people since October 2023 and triggered widespread famine.