Norway Sovereign Wealth Fund divests $661 million from Israeli banks

The Norwegian sovereign wealth fund, the world's largest, has announced the divestment of approximately $661 million from five Israeli banks. The decision, managed by the Norges Bank Investment Management, follows an ethical review citing ‘unacceptable risks’ that the companies may contribute to serious human rights violations in the context of war and conflict.

The excluded financial institutions include Bank Leumi, Mizrahi Tefahot Bank, Bank Hapoalim, First International Bank of Israel, and FIB Holding. This move follows a previous decision in August to divest from the American company Caterpillar due to the use of its machinery in the demolition of Palestinian property in Gaza and the West Bank.

The fund's ethics council noted that there is no doubt Caterpillar products are used in widespread and systematic violations of international humanitarian law. This divestment is part of a broader pattern of ethical exclusions by the fund, which has previously divested from companies like Baz and Bezeq due to operations in settlements.