Norway’s biggest pension fund, KLP, has dropped U.S. company Oshkosh Corporation and Germany’s ThyssenKrupp AG from its investment portfolio, citing their involvement with the Israeli military amid ongoing hostilities in Gaza.
A June 2024 United Nations report named companies supplying weapons and military equipment to the Israel Defense Forces (IDF). After reviewing the report and engaging directly with the firms, KLP concluded that both companies violated its ethical investment standards.
Oshkosh confirmed it continues to provide vehicles and components to the Israeli army, while ThyssenKrupp acknowledged previous deliveries of four Sa’ar 6 warships and a planned submarine delivery this year. Both firms failed to adequately demonstrate safeguards, ensuring their products are not used in ways that breach humanitarian law.
Kiran Aziz, head of responsible investments at KLP Kapitalforvaltning, stated the companies were dropped for failing to meet the fund’s standards on responsible investing and due diligence in conflict zones.
At the time of divestment, KLP held roughly $1.8 million in Oshkosh and $1 million in ThyssenKrupp. The fund manages approximately $114 billion and maintains strict ethical screening, with a particular focus on human rights and compliance with international law.
This latest decision adds Oshkosh and ThyssenKrupp to a list of previously excluded firms, including Caterpillar, Motorola, and Adani Ports, reflecting a broader trend among European financial institutions distancing themselves from defense contractors linked to the Israeli occupation or operations in conflict zones.
KLP’s policy prohibits investing in companies that supply arms to states engaged in armed conflict where international law may be violated. The divestment highlights the increasing accountability of investors for corporate ties to human rights risks.
