Norway's largest pension fund divested from two major defense contractors on Monday, citing their role in supplying equipment to Israel's military for use in Gaza. The move represents the latest step by Norwegian financial institutions to distance themselves from companies connected to Israel's military operations in the Palestinian territory.
KLP, which manages $114 billion in assets, dropped US truck manufacturer Oshkosh Corporation and German industrial conglomerate ThyssenKrupp from its investment portfolio. The pension fund sold holdings worth $1.9 million in Oshkosh and $1 million in ThyssenKrupp.
The divestment decision centered on both companies' ongoing relationships with Israel's military. KLP determined that Oshkosh supplies trucks to Israeli forces, which are then converted into armored troop transport vehicles for use in Gaza1. ThyssenKrupp has provided corvettes and submarines to Israel's navy, with deliveries continuing after the October 7, 2023 Hamas attack that triggered the current conflict1.
"Companies have an independent duty to exercise due diligence in order to avoid complicity in violations of fundamental human rights and humanitarian law," said Kiran Aziz, head of responsible investments at KLP Asset Management1.
The fund excluded the companies based on its criterion regarding "sale of weapons to states in armed conflicts that use the weapons in ways that represent serious and systematic breaches of international law"1.
KLP's action follows a series of divestments by Norwegian financial institutions from Israel-linked companies. In May, Norway's sovereign wealth fund—the world's largest at $1.9 trillion—sold its shares in Israeli fuel company Paz Retail and Energy over its operations in West Bank settlements1.
The sovereign wealth fund has excluded 11 companies for contributing to what it calls Israeli "occupation" and currently holds $2 billion across 65 Israeli companies2. However, Norway's parliament rejected broader divestment proposals earlier this month, voting 88 to 16 against requiring the fund to withdraw from all companies "that contribute to Israel's war crimes and the illegal occupation"3.
KLP has previously divested from companies over human rights concerns, including Motorola in 2021 over its connections to Israeli settlements1. The fund also withdrew from Russian companies following Moscow's 2022 invasion of Ukraine1.
UN experts warned in June 2024 that weapons transfers to Israel "may constitute serious violations of human rights and international humanitarian laws and risk state complicity in international crimes, possibly including genocide"2. The Gaza conflict began after Hamas's October 7 attack killed 1,200 people in Israel, mostly civilians2.
