Norway’s largest pension fund, KLP, has announced it will no longer do business with Oshkosh Corporation, a U.S. company, and ThyssenKrupp, a German industrial giant. This decision comes after reports that equipment from these companies is being used by the Israeli military in Gaza. KLP oversees a fund valued at $114 billion and covers around 900,000 people.
The fund decided to divest after both companies failed to provide adequate documentation about their potential complicity in violations of humanitarian law. Oshkosh confirmed selling equipment used by the Israeli army, mainly vehicles and vehicle parts. ThyssenKrupp revealed a long-term relationship with the Israeli military, supplying four Sa’ar 6 warships to the Israeli Navy between 2020 and 2021, with plans to deliver a submarine later this year.
“Companies have an independent duty to exercise due diligence to avoid complicity in violations of fundamental human rights and humanitarian law,” said Kiran Aziz, head of responsible investments at KLP Kapitalforvaltning.
KLP divestment over ethical concerns
This divestment adds to KLP’s history of distancing itself from companies linked to potential human rights abuses.
In 2021, KLP divested from Motorola and other firms associated with illegal Israeli settlements in the West Bank. It also withdrew investments from Adani Ports due to its connections with Myanmar’s military government and from Caterpillar due to the use of its bulldozers in the demolition of Palestinian homes and infrastructure. KLP’s decision is part of a broader trend among major European investment funds.
In recent years, several funds have divested from companies involved in the Israeli occupation of the West Bank or the war in Gaza. This includes Norway’s sovereign wealth fund, the world’s largest, and funds in Denmark and the United Kingdom. These moves highlight growing scrutiny and ethical considerations among investors regarding companies’ involvement in regions of conflict and human rights violations.
