Norway’s KLP Pension Fund Divests From Firms Supplying Equipment to Israeli Military

Norway’s largest pension fund, Kommunal Landspensjonskasse (KLP), has announced divestment from two major defense companies—U.S.-based Oshkosh Corporation and Germany’s ThyssenKrupp—after determining their equipment may be used by the Israeli military in Gaza.

KLP, which manages approximately $114 billion in assets on behalf of municipal employees, said the decision comes in response to a United Nations report indicating that these companies supplied arms linked to serious violations of international humanitarian law. According to KLP’s ethical guidelines, investments in firms that materially contribute to conflict-related abuses contravene the fund’s values.

KLP’s “responsible investments” head, Kiran Aziz, stated that both firms “failed to document the necessary due diligence in relation to their potential complicity in violations of humanitarian law.” The fund held around $1.8 million in Oshkosh shares and nearly $1 million in ThyssenKrupp before the announcement. This move marks the latest in KLP’s broader portfolio review, following earlier divestments over links to West Bank settlement construction and human rights concerns in other conflict zones.

Advocates for ethical investing have welcomed the decision, noting it signals growing investor accountability for military supply chains linked to contentious conflicts. Critics, however, warn such divestments raise complex questions about achieving financial returns while upholding moral standards in a globalized economy.

With input from Al Jazeera