Netherlands' top pension fund divests from US company Caterpillar over supplies to IDF

Citing ‘socially responsible’ investment policy, ABP sells off 387 million-euro stake in US firm, following similar move by Norway’s sovereign wealth fund in August

The largest pension fund in the Netherlands has sold its entire stake in US construction equipment maker Caterpillar, which supplies the IDF, the fund announced Wednesday, citing the company’s “socially responsible” investment policy.

ABP, which commands about 524 billion euros ($615.44 billion) in total assets, previously held around 387 million euros in Caterpillar shares.

When asked about the decision, the fund referred to the company’s policy regarding investments in conflict areas such as Gaza, where the Israel-Hamas war was sparked when Hamas invaded Israel on October 7, 2023.

“The way we invest must ensure good returns and at the same time be socially responsible,” ABP said in a statement. “We include companies that meet our criteria in our investment portfolio. And we make every effort to encourage companies that are lagging behind to conduct their business more responsibly … If discussions with companies do not lead to the desired results, ABP will ultimately no longer invest in these companies.”

Caterpillar did not immediately reply to a request for comment.

ABP’s decision followed a similar move in August by Norway’s $2 trillion sovereign wealth fund — the largest of its type in the world — which divested from Caterpillar and five Israeli banks.

Illustrative: An Israeli military armored bulldozer is pictured along a partially demolished road during an army operation in the Palestinian refugee camps in Tulkarem in the northwest of the West Bank on April 16, 2025. (Zain JAAFAR / AFP)

The fund’s ethics watchdog at the time said there was no doubt that Caterpillar’s products were being used by Israeli authorities in the “widespread unlawful destruction of Palestinian property” in Gaza and the West Bank, and that the company had made no effort to prevent this.

The US State Department said at the time that Washington was “very troubled” by the move and was engaging directly with Oslo on the issue.

The IDF uses several heavy tools produced by Caterpillar, including the D9, an armored bulldozer used to clear mines and raze structures, among other functions. In July, the military received dozens of D9 and other bulldozers that had been held up by the previous White House over concerns that Israel used them to demolish Gaza homes, where the military has accused Hamas of embedding itself.