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Norway’s largest pension fund has cut ties with Caterpillar due to the US bulldozer company’s alleged contribution to the construction of illegal settlements and other human rights violations by Israel’s armed forces in the West Bank and Gaza.

KLP took the decision to divest its $69m stake in the Texas-based industrial manufacturing group earlier this month after Caterpillar failed to provide satisfactory assurances that it was taking action to reduce the risk of its equipment being used by the Israeli military against Palestinians in violation of international law.

“For a long time, Caterpillar has supplied bulldozers and other equipment that has been used to demolish Palestinian homes and infrastructure to clear the way for Israeli settlements,” said Kiran Aziz, head of responsible investments at KLP.

The converted bulldozers have allegedly been used in demolishing houses and other infrastructure to facilitate the construction of illegal Israeli settlements in the West Bank, according to reports by multiple rights groups and journalists.

In December, rights groups and journalists accused the Israeli army of using bulldozers to bury wounded Palestinian civilians alive outside the Kamal Adwan hospital in northern Gaza following a nine-day siege.

Despite months of back-and-forth – and the steadily worsening situation – KLP said that Caterpillar was unable to demonstrate that it had made any real changes to reduce the risk that its equipment wasn’t being used to violate humanitarian law and cause harm to Palestinians.

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