Norwegian pension fund cuts ties with firms supplying Israeli military

Norway’s largest public pension fund, KLP, has announced its decision to withdraw investments from two international firms Oshkosh Corporation and ThyssenKrupp over concerns that their products are being used by the Israeli military in Gaza.

KLP stated that it acted after reviewing UN reports from June 2024, which identified companies providing weapons or equipment to Israeli forces. According to Kiran Aziz, KLP’s Head of Responsible Investments, both Oshkosh and ThyssenKrupp were found to be in breach of KLP’s ethical investment principles. As a result, KLP will exclude them from its investment portfolio.

Until June 2025, the fund had invested approximately $1.8 million in Oshkosh and nearly $1 million in ThyssenKrupp. KLP, established in 1949, manages around $114 billion and supports pension schemes for about 900,000 people, primarily municipal employees.

Before reaching its decision, KLP contacted both companies. Oshkosh acknowledged that it had sold vehicles and vehicle components used by Israeli forces in Gaza. ThyssenKrupp disclosed its long-standing relationship with the Israeli military, including the delivery of four Sa’ar 6 warships between 2020 and 2021, and an upcoming submarine delivery.

KLP noted that when asked about oversight mechanisms regarding the use of their equipment, both companies failed to demonstrate adequate due diligence. Aziz emphasized that companies have a responsibility to avoid complicity in violations of international human rights and humanitarian law.

This action continues KLP’s history of withdrawing from firms linked to human rights concerns. In 2021, the fund cut ties with 16 companies connected to Israeli settlements in the occupied West Bank, including Motorola. That same year, KLP divested from Adani Ports due to links with Myanmar’s military regime, and later from Caterpillar over concerns related to the demolition of Palestinian homes.

KLP’s move aligns with a broader trend among European institutional investors reevaluating ties with companies associated with Israel’s military actions or settlement expansion. Earlier in 2024, Denmark’s largest pension fund exited investments in several Israeli entities, and the UK’s largest pension scheme announced it would sell off all holdings related to Israel following member pressure.

In May, Norway’s sovereign wealth fund also cut ties with Israeli firms involved in settlement infrastructure and services, underscoring growing financial resistance in Europe to business activities linked to the Israeli occupation or the war in Gaza.