Norway’s largest pension fund, KLP, announced that it has divested from US-based Oshkosh Corporation and Germany’s ThyssenKrupp due to their involvement in supplying weapons and equipment used by the Israeli occupation's military in Gaza.

KLP, which operates independently from Norway’s sovereign wealth fund—the largest in the world—stated that Oshkosh Corporation had been providing trucks to the Israeli occupation forces (IOF), which are then modified into armored troop transport vehicles.

The fund also cited ThyssenKrupp’s agreement, made prior to the outbreak of the war on Gaza, to supply "Israel’s" navy with corvettes and submarines.

“Companies have an independent duty to exercise due diligence in order to avoid complicity in violations of fundamental human rights and humanitarian law,” said Kiran Aziz, head of responsible investments at KLP Asset Management.

KLP’s ethical guidelines violated

KLP, which managed $114 billion in assets during the first quarter, announced it had sold its holdings in Oshkosh Corporation, valued at 19 million kroner ($1.9 million), as well as its 10 million kroner investment in ThyssenKrupp.

The divestments were made under KLP’s ethical guidelines, specifically its criterion regarding “the sale of weapons to states engaged in armed conflict, where such weapons are used in ways that constitute serious and systematic breaches of international humanitarian law.”

KLP noted that both companies had longstanding relationships with the Israeli military and continued to supply equipment even after the outbreak of the war on Gaza on October 7, 2023.

KLP withdraws from Caterpillar

Last June, KLP withdrew from US manufacturing giant Caterpillar due to the potential of its equipment being used by the Israeli occupation forces (IOF) in the war on Gaza.

Bloomberg reported last March that the Norwegian government advised its enterprises against engaging in trade and economic operations that contribute to the continued existence of Israeli settlements, reinforcing its current position.

Aziz, at the time, stated, "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," adding that the company is also allegedly using the equipment in its aggression on Gaza.

As a result, the KLP stated there was a risk the company may be "contributing to human rights abuses and violation of international law in the West Bank and Gaza."

According to the fund, since Caterpillar cannot give guarantees that it is not involved in such actions, "we have decided to exclude the company from investment."