Norway’s largest pension fund, KLP, has removed two defense companies from its investment portfolio due to their ties to the Israeli military and the ongoing conflict in Gaza. The companies, U.S.-based Oshkosh Corporation and Germany’s ThyssenKrupp AG, were excluded following reports that their products had been used by Israeli forces in the conflict.
The decision followed a June 2024 report by the United Nations, which identified several firms supplying arms and equipment to the Israel Defense Forces (IDF) for operations in Gaza. After engaging with both companies, KLP concluded that Oshkosh and ThyssenKrupp violated its guidelines on responsible investment.
Kiran Aziz, head of responsible investments at KLP Kapitalforvaltning, explained that the companies were excluded after KLP concluded they were “contravening our responsible investment guidelines.”
At the time of divestment, KLP held approximately $1.8 million in Oshkosh and $1 million in ThyssenKrupp. The fund, which manages around $114 billion in assets, applies strict ethical standards to its investment decisions, particularly concerning human rights and international law.
KLP noted that Oshkosh confirmed ongoing sales of vehicles and components used by the Israeli army in Gaza. ThyssenKrupp disclosed a long-standing relationship with the Israeli military, including the delivery of four Sa’ar 6 warships between 2020 and 2021 and plans to supply a submarine later in 2024. However, both companies failed to provide sufficient documentation on the measures they take to ensure their equipment is not used in violation of humanitarian law.
Aziz emphasized that companies have a duty to “exercise due diligence” to avoid being complicit in serious human rights violations.
This move aligns with a broader pattern of European financial institutions distancing themselves from firms involved in the Israeli occupation or military operations. KLP has previously excluded companies such as Caterpillar, Motorola, and Adani Ports over similar concerns.
KLP’s guidelines prohibit investments in businesses that sell weapons to states engaged in armed conflict where the use of such weapons is not permitted by international law. The fund’s recent decision underscores growing scrutiny of corporate links to disputes and the role of investors in upholding ethical standards.
