**Norway’s KLP Pension Excludes Defense Firms Over Gaza Ties**
Norway’s largest private pension fund, KLP Pension, has announced the exclusion of two defense companies from its investment portfolio due to their connections with the Israeli military and the ongoing conflict in Gaza. Managing approximately $114 billion in assets, KLP stated on Monday that it will no longer invest in Oshkosh Corp. or ThyssenKrupp AG, as both companies supply weapons to the Israeli military.
This decision follows a United Nations report from June that identified firms providing arms to the Israel Defense Forces, which have been used in Gaza. After discussions with the companies, KLP determined that they were in violation of the fund’s investment guidelines. Kiran Aziz, head of responsible investments at KLP Kapitalforvaltning, emphasized the fund’s commitment to ethical investing, stating, “We have therefore decided to exclude them from our investment universe.”
Prior to June 16, KLP held shares valued at approximately 19 million kroner in Oshkosh and around 10 million kroner in ThyssenKrupp. Representatives from both companies did not respond to requests for comment outside of regular business hours.
The backdrop to this decision includes the escalation of violence following Hamas’s attack on southern Israel on October 7, 2023, which resulted in the deaths of 1,200 individuals and has led to a prolonged conflict in Gaza. Reports indicate that over 55,000 Palestinians have died, with significant destruction across the region.
KLP’s move aligns with a broader initiative by human rights advocates urging financial institutions and consumers to divest from or boycott companies associated with Israel. In Norway, this campaign has particularly targeted Norges Bank Investment Management, the nation’s $1.9 trillion sovereign wealth fund, which has investments in numerous Israeli firms. The sovereign fund has previously excluded companies linked to Israel’s occupation of the West Bank.
KLP referenced guidance from the UN High Commissioner for Human Rights and a panel of UN experts, which warned that companies supplying arms to Israeli forces may be complicit in serious human rights violations. The International Criminal Court has issued arrest warrants for Israeli officials, including Prime Minister Benjamin Netanyahu, for alleged war crimes in Gaza, which the Israeli government has denied, asserting that its military actions comply with international law.
KLP’s investment policies prohibit ownership in companies involved in the sale of weapons to states engaged in armed conflicts that result in significant breaches of international law. Aziz reiterated the expectation for companies to conduct due diligence to avoid complicity in human rights violations. Notably, KLP had previously excluded Caterpillar Inc. on similar grounds.
**FAQ**
**Q: Why did KLP Pension exclude Oshkosh and ThyssenKrupp from its portfolio?**
A: KLP Pension excluded these companies due to their involvement in supplying weapons to the Israeli military, which are used in ways that violate international law, particularly in the context of the ongoing conflict in Gaza.
