Netherlands’ Top Pension Fund Dumps Caterpillar Over Gaza Demolitions

The Netherlands’ largest pension fund, ABP, announced Wednesday that it had divested from US manufacturer Caterpillar, citing concerns over the use of its equipment by Israeli forces in Gaza.

ABP, which manages investments on behalf of three million government and education employees, confirmed it had sold its stake worth around $454 million as of late March.

“Our investment approach must ensure good returns while being socially responsible,” the fund said in a statement to AFP.  It added that when companies fail to meet its standards, discussions are held, but “if these do not lead to the desired results, ABP will stop investing in these companies.”

While declining to disclose decisions about individual firms, ABP acknowledged that “the composition of our investment portfolio is evolving, particularly in Israel–Gaza.” AFP said Caterpillar had been contacted for comment but offered no response.

The Dutch fund’s withdrawal came as European institutions were intensifying divestments from companies tied to Israel’s genocide in Gaza and its settlement drive in the occupied West Bank.

In late August, Norway’s $2-trillion sovereign wealth fund – the largest in the world – announced it had excluded Caterpillar and five Israeli banks after an ethics review concluded they were enabling grave violations of international law.

The Council on Ethics said Caterpillar’s bulldozers and heavy machinery were deployed in “extensive and systematic violations of international humanitarian law,” including the destruction of Palestinian homes and property.

It stressed that Caterpillar had failed to act against the weaponization of its equipment. The same review led to the exclusion of Hapoalim, Leumi, Mizrahi Tefahot, First International Bank of Israel (FIBI), and FIBI Holdings for underwriting and financing settlement construction, described as a “necessary prerequisite” for sustaining an illegal occupation.

Fund chief Nicolai Tangen described the divestments as “extraordinary measures” taken in response to the worsening humanitarian disaster in Gaza. He noted that exposure to Bet Shemesh Engines – a jet engine manufacturer servicing Israeli warplanes bombing Gaza – had triggered the review.

President Trump has openly criticized nations and funds that boycott the Texas-based company.

Senator McCormick, an ally of President Trump, urged the White House to consider tariffs and restricting Norway’s access to US markets in response to the Norwegian sovereign wealth fund’s decision to divest from Texas-based Caterpillar https://t.co/3oN1DZMSAa

— Bloomberg (@business) September 5, 2025

Norwegian Prime Minister Jonas Gahr Store called the investment “worrying.” Earlier in August, the Norwegian fund confirmed it had already dropped 11 Israeli companies, underscoring a broader retreat by European investors from firms complicit in Israel’s military campaign and settlement expansion.