Norwegian pension fund cuts ties with companies supplying Israeli military
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Thyssenkrupp headquarters in Essen, Germany, November 22, 2023. (REUTERS)
Oslo: Norway’s largest pension fund, KLP, has announced it will divest from two major companies supplying equipment to the Israeli military, citing concerns that the equipment is being used in the ongoing war in Gaza.
The companies in question are the United States-based Oshkosh Corporation, known for manufacturing military vehicles, and Germany’s ThyssenKrupp, a conglomerate involved in both civilian and defence industries. KLP’s decision follows a review of reports from the United Nations indicating that several firms have been supplying arms or military equipment to the Israeli army, with that equipment possibly being deployed in Gaza.
“In June 2024, KLP learned of reports from the UN that several named companies were supplying weapons or equipment to the -[Israeli army] and that these weapons are being used in Gaza,” said Kiran Aziz, Head of Responsible Investments at KLP Kapitalforvaltning, in a statement to Al Jazeera.
“Our conclusion is that the companies Oshkosh and ThyssenKrupp are contravening our responsible investment guidelines. We have therefore decided to exclude them from our investment universe.”
Until June 2025, KLP had investments worth approximately $1.8 million in Oshkosh and nearly $1 million in ThyssenKrupp. The pension fund, founded in 1949, manages assets totalling around $114 billion and provides pensions to nearly 900,000 individuals, mostly municipal workers. It is owned by Norwegian municipalities and public sector organisations.
KLP stated that it engaged with both companies before making the decision. Oshkosh reportedly confirmed it had sold, and continues to sell, vehicles and related equipment to the Israeli military for use in Gaza. ThyssenKrupp disclosed to KLP that it maintains a long-term relationship with the Israeli military, having delivered four Sa’ar 6-class warships to the Israeli Navy between November 2020 and May 2021. The company also has plans to deliver a submarine to Israel later in 2025.
When asked by KLP what safeguards the companies had in place to ensure their products were not used in violation of international humanitarian law, both firms “failed to document the necessary due diligence in relation to their potential complicity,” the pension fund said.
“Companies have an independent duty to exercise due diligence in order to avoid complicity in violations of fundamental human rights and humanitarian law,” Aziz added.
This is not the first time KLP has divested over concerns related to human rights. In 2021, it pulled investments from 16 companies, including Motorola, over alleged links to illegal Israeli settlements in the occupied West Bank. At the time, KLP stated that these companies posed an “unacceptable risk” of contributing to human rights abuses in conflict zones due to their roles in supporting Israeli settlement infrastructure.
That same year, KLP also withdrew investments from the Indian conglomerate Adani Ports, citing its ties with the Myanmar military government. In 2023, it divested from US construction equipment giant Caterpillar, accusing the firm of providing bulldozers that, after modifications in Israel, were used in demolishing Palestinian homes and infrastructure in the occupied territories. In an opinion article published by Al Jazeera, Aziz argued that the frequent use of Caterpillar’s weaponised bulldozers in such demolitions had triggered decades of concern from the United Nations and various non-governmental organisations.
“The constant use of these weaponised bulldozers in the occupied Palestinian territory has led to a series of human rights warnings from United Nations agencies and non-governmental organisations over the last two decades about the company’s involvement in the demolition of Palestinian homes and infrastructure,” she wrote. “It is therefore impossible to assert that the company has implemented adequate measures to avoid becoming involved in future norm violations.”
KLP’s latest decision aligns with a broader movement among European investment funds distancing themselves from firms linked to Israel’s military activities or settlements in the occupied Palestinian territories. In May, Norway’s sovereign wealth fund—the world’s largest—announced its decision to divest from Israel’s Paz Retail and Energy due to its role in supplying fuel and infrastructure to illegal settlements. This followed an earlier move in December 2023 to sell shares in Israeli telecom provider Bezeq over its services provided to settlements.
Other major funds have followed suit. In February 2024, Denmark’s largest pension fund divested from several Israeli banks and firms over fears that their operations may finance settlement activities. By June, the United Kingdom’s largest pension fund, the Universities Superannuation Scheme (USS), also opted to exit all investments linked to Israel over the Gaza conflict. The USS, with a total portfolio of around $79 billion, announced it would sell its $101 million in Israeli-linked holdings, following pressure from its membership.
These decisions reflect growing scrutiny by global institutional investors over companies potentially involved in violations of international law in the occupied Palestinian territories and Gaza.
