Norway’s $2 trillion sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has divested from Caterpillar and five Israeli banks over concerns about their roles in rights violations linked to the West Bank conflict.

The fund cited Caterpillar bulldozers used in the destruction of Palestinian property and Israeli banks’ financing of settlement construction deemed illegal under international law.

The move comes amid political pressure in Norway and heightened scrutiny over the fund’s exposure to Israeli firms during the Gaza conflict.

While NBIM says it is simplifying its Israeli holdings in line with ethical guidelines, critics note it continues investing in other controversial sectors and countries, CNBC has reported.

The fund stresses its mandate balances returns with human rights considerations, with analysts noting such exclusions have had little long-term impact on performance.