The Nordic Fund KLP excludes 16 companies with ties to the occupied West Bank Reuters

Authors: Gwladys Fouche and Simon Jessop

Oslo (Reuters)-Norway’s largest pension fund KLP said on Monday that it will no longer invest in 16 companies, including Alstom (PA:) and Motorola, because they are connected to Israeli settlements in the West Bank.

Like some other countries, Norway believes that these settlements violate international law. A United Nations report in 2020 stated that it found 112 companies that have business ties to the region, which has approximately 650,000 Israelis.

It said in a statement that these companies cover the telecommunications, banking, energy and construction industries and all contribute to the existence of Israel, and therefore may become complicit in violations of international law and KLP ethics.

“In KLP’s assessment, the excluded companies have contributed to human rights violations in the context of war and conflict through ties to Israeli settlements in the occupied West Bank. This is an unacceptable risk.” KLP said.

KLP’s move came after the Norwegian sovereign wealth fund decided in May to exclude two companies related to construction and real estate in the Palestinian territories.

KLP said it had sold company shares worth 275 million Norwegian kroner ($31.81 million) and had completed the process as of June. In Motorola and Alstom, it also sold its bonds.

The sale of Motorola Solutions (NYSE:) was “a very straightforward decision” because of its video security and software for border surveillance.

KLP stated that telecommunications companies, including Bezeq and Cellcom Israel, were removed because they provided services that helped make settlements more attractive in residential areas, while banks including Leumi helped fund infrastructure .

Similarly, Alstom and local counterparts Ashtrom and Electra and other construction and engineering groups are responsible for building the infrastructure, while Paz Oil helps to power them.

Other excluded companies include: Bank Hapoalim, Israel Discount Bank, Mizrahi Tefahot Bank, Delek Group, Energix Renewable Energies, First International Bank of Israel and Partner Communications.

The telecommunications company Altice, which was listed until January 2021, was also excluded.

(1 USD = 8.6460 Norwegian Krone)