AMSTERDAM (Reuters) -Dutch pension fund ABP has sold its entire stake in U.S. construction equipment-maker Caterpillar on ethical grounds, it said on Wednesday. ABP, the largest pension fund in the Netherlands with around 524 billion euros ($615.44 billion) in total assets, previously held around 387 million euros in Caterpillar shares.
The fund referred to the company’s policy regarding investments in conflict areas such as in Israel-Gaza when asked about the decision.
“The way we invest must ensure good returns and at the same time be socially responsible,” ABP said in a statement.
“We include companies that meet our criteria in our investment portfolio. And we make every effort to encourage companies that are lagging behind to conduct their business more responsibly … If discussions with companies do not lead to the desired results, ABP will ultimately no longer invest in these companies.”
Caterpillar did not immediately reply to a request for comment.
ABP’s decision followed a similar move by Norway’s $2 trillion sovereign wealth fund last month, which divested from Caterpillar and five Israeli banking groups.
The fund’s ethics watchdog at the time said there was no doubt that Caterpillar’s products were being used by Israeli authorities in the “widespread unlawful destruction of Palestinian property”, and that the company had made no effort to prevent this.
($1 = 0.8514 euros)
(Reporting by Bart Meijer and Benoit Van Overstraeten; Editing by Ed Osmond)
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