Key Metrics
12.87
Heat Index-
Impact LevelMedium
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Scope LevelGlobal
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Last Update2025-08-26
Key Impacts
Negative Impacts (6)
Event Overview
Institutional divestment based on ethical evaluation illustrates the growing importance of responsible investment frameworks for global capital allocators. Such decisions can reflect heightened scrutiny around corporate conduct, environmental, social, or governance issues, and may amplify financial and reputational risks for affected companies. The event highlights ongoing tensions between profitability and adherence to ethical or human rights standards in international financial markets.
Collect Records
Norwegian Sovereign Wealth Fund Divests from US and Israeli Companies over Ethical Concerns
On June 25, the Norwegian Sovereign Wealth Fund announced its decision to withdraw investments from one American company and five Israeli financial institutions due to ethical concerns. The companies involved include US construction and mining equipment manufacturer Caterpillar and Israel's two largest banks, Bank Hapoalim and Bank Leumi. The Norwegian Sovereign Wealth Fund, managed by Norway's central bank, is the world's largest sovereign wealth fund, with assets totaling $2 trillion. In its statement, the fund said that the divestment was made because these Israeli and American companies 'contributed to serious violations of individual rights in war and conflict' and posed 'an unacceptable risk.' The fund’s oversight body, the Ethics Committee, stated that Caterpillar's bulldozers and other products had been used by Israeli authorities for large-scale illegal destruction of Palestinian property, and that the Israeli banks contributed to maintaining Israeli settlements by providing financial services.