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“For a long time, Caterpillar has supplied bulldozers and other equipment that has been used to demolish Palestinian homes and infrastructure to clear the way for Israeli settlements. It has also been alleged that the company’s equipment is being used by the Israeli Defence Force (IDF) in connection with its military campaign in Gaza following the Hamas attack on 7 October last year. Since the company cannot provide us with assurances that it is doing anything in this regard, we have decided to exclude the company from investment,” says Kiran Aziz, Head of Responsible Investments at KLP Kapitalforvaltning.
Over a period of several months, KLP has engaged in a dialogue with the company concerning the risk that it is contributing to human rights abuses and violation of international law. At Caterpillar’s annual general meetings in 2022 and 2023, KLP voted in favour of requiring the company to report risks relating to operations in areas of conflict. In its replies to KLP, however, the company has not addressed such risks. Caterpillar has been made aware of how the Israeli Defence Force is using its equipment. Yet despite the steadily worsening situation, the company is unable to demonstrate that it has performed enhanced due diligence assessments or made any real changes.
“Although Caterpillar has shown itself willing to engage in a dialogue with KLP, the company’s responses failed to credibly substantiate its ability to actually reduce the risk of violating the rights of individuals in situations of war or conflict, or of violating international law,” says Aziz.
Read KLP Kapitalforvaltning’s decision document to find out more about the background to Caterpillar’s exclusion.
Prior to 17th June 2024, KLP and the KLP Funds owned shares and bonds in the company worth a total of NOK 728 million.
For more information, please contact:
Kiran Aziz, Head of Responsible Investments at KLP Kapitalforvaltning. Phone: +47 95208194
Glenn Slydal Johansen, Communications Consultant at KLP. Phone: +47 93037976