Norwegian pension fund exits investments in companies supplying the Israeli military.
Norway’s largest pension fund, KLP, has taken a significant ethical stance by terminating its business relationships with two companies involved in supplying military equipment to the Israeli armed forces. This decision arises in response to concerns that such equipment may be implicated in the ongoing conflict in Gaza, highlighting KLP’s commitment to responsible investment practices.
The two firms affected are Oshkosh Corporation, an American company primarily known for its trucks and military vehicles, and ThyssenKrupp, a German industrial conglomerate with a diverse product range that includes warships and elevators. Kiran Aziz, head of responsible investments at KLP Kapitalforvaltning, acknowledged in a statement to ZezapTV that research conducted by the United Nations suggested these companies’ equipment was being utilized by the Israeli military in Gaza.
KLP concluded that both Oshkosh and ThyssenKrupp violated the fund’s investment guidelines, prompting the decision to exclude them from its portfolio. At the time of the divestment, KLP had around .8 million invested in Oshkosh and nearly million in ThyssenKrupp. Founded in 1949, KLP is Norway’s largest pension fund, managing a total fund worth approximately 4 billion and serving around 900,000 municipal workers and other public-sector employees.
Prior to making the divestment decision, KLP engaged with both companies regarding their operations. Oshkosh reportedly confirmed its continued provision of military vehicles and related parts to the Israeli military, while ThyssenKrupp noted its long-term relationship with the military, including the delivery of four Sa’ar 6 warships and plans to provide a submarine in the near future. KLP expressed concerns that both companies failed to demonstrate adequate due diligence concerning their potential complicity in violations of human rights and international humanitarian law, underscoring the importance of corporate accountability.
This latest divestment is consistent with KLP’s history of distancing itself from companies associated with human rights violations. In 2021, the fund divested shares in 16 firms, including Motorola, based on links to illegal settlements in the occupied West Bank. Furthermore, KLP’s decision aligns with a broader trend among European investment funds that have recently severed ties with Israeli entities linked to the Gaza conflict or illegal settlements, reflecting a growing awareness and activism among investors regarding human rights issues on a global scale.
The implications of KLP’s decision extend beyond individual corporate accountability; they also resonate with the values of responsible investing and ethical finance in today’s interconnected world. By prioritizing human rights and humanitarian principles, KLP aims to set a standard for investment practices that respect global ethical norms.
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