THE HAGUE: The largest Dutch pension fund ABP has divested from US manufacturing firm Caterpillar following concerns about the alleged use of the company’s equipment by Israel in Gaza.
ABP is a major investor in many countries around the world and held a stake in Caterpillar worth approximately 387 million euros as of late March.
“Our investment approach must ensure good returns while being socially responsible,“ said ABP, the pension fund for three million government and education employees in the Netherlands.
“If companies do not meet our criteria, we engage in discussions,“ the fund explained in a statement sent to AFP.
“If these do not lead to the desired results, ABP will stop investing in these companies,“ the fund further clarified.
In August, Norway’s sovereign wealth fund sold its stake in Caterpillar over purported involvement in rights violations in the Israel-Hamas war.
The Norwegian fund is the biggest in the world with a value of nearly two trillion dollars.
“There is no doubt that Caterpillar products are used to commit widespread and systematic violations of international humanitarian law,“ the fund noted.
ABP declined to comment on its decisions regarding specific companies due to competitive sensitivity and confidentiality.
“It is clear that the composition of our investment portfolio is evolving, particularly in Israel-Gaza,“ ABP added.
AFP contacted Caterpillar for comment but there was no immediate response. – AFP