KLP, based in Oslo, sold Caterpillar shares and bonds worth 728 million kronor (US$69 million) earlier this month, according to Kiran Aziz, the firm’s head of responsible investments.

She pointed to the use of the Texas-based company’s equipment “to demolish Palestinian homes and infrastructure to clear the way for Israeli settlements.” Aziz also cited allegations that Caterpillar equipment is being used by the Israeli Defense Forces.

The pension fund’s decision feeds into a broader campaign by human rights activists urging the finance industry to divest and consumers to boycott companies linked to Israel. The IDF launched its military campaign in Gaza after the Oct 7 Hamas terrorist attacks on Israeli citizens.

Caterpillar wasn’t immediately available to comment.

“Although Caterpillar has shown itself willing to engage in a dialogue with KLP, the company’s responses failed to credibly substantiate its ability to actually reduce the risk of violating the rights of individuals in situations of war or conflict, or of violating international law,” Aziz said. “The company cannot provide us with assurances that it is doing anything in this regard.”

KLP, which has total assets of roughly US$100 billion, describes itself as a responsible investor that’s willing to divest from companies for environmental, social and governance reasons.

In recent years, it has targeted Saudi Aramco because of climate risks, US-based firms overseeing refugee centers linked to human right violations, and other companies tied to Israeli settlements in the West Bank.

The United Nations’ Office of the High Commissioner for Human Rights cited Caterpillar among a number of corporations supplying Israel with military equipment, in a statement released last week. It urged investors with stakes in these companies to “take action.”