(Bloomberg) -- Norway’s largest private pension fund has exited its stake in Caterpillar Inc., citing concerns that the US company may be contributing to human rights abuses in the West Bank and Gaza.

Most Read from Bloomberg

• YouTuber Dr Disrespect Was Allegedly Kicked Off Twitch for Messaging Minor

• Volkswagen Invests $5 Billion in EV Startup Rivian to Form Joint Venture

• Trump Could Actually Lose Florida. Here’s Why.

• Nvidia Rout Takes Breather as Traders Scour Charts for Support

• Julian Assange Leaves Court ‘Free Man,’ Ending 14-Year Drama

KLP, based in Oslo, sold Caterpillar shares and bonds worth 728 million kroner ($69 million) earlier this month, according to Kiran Aziz, the firm’s head of responsible investments. She pointed to the use of the Texas-based company’s equipment “to demolish Palestinian homes and infrastructure to clear the way for Israeli settlements.” Aziz also cited allegations that Caterpillar equipment is being used by the Israeli Defense Forces.

The pension fund’s decision feeds into a broader campaign by human rights activists urging the finance industry to divest and consumers to boycott companies linked to Israel. The IDF launched its military campaign in Gaza after the Oct. 7 Hamas terrorist attacks on Israeli citizens.

Spokespeople for Caterpillar didn’t return emails and phone calls seeking comment.

“Although Caterpillar has shown itself willing to engage in a dialogue with KLP, the company’s responses failed to credibly substantiate its ability to actually reduce the risk of violating the rights of individuals in situations of war or conflict, or of violating international law,” Aziz said. “The company cannot provide us with assurances that it is doing anything in this regard.”

KLP, which has total assets of roughly $100 billion, describes itself as a responsible investor that’s willing to divest from companies for environmental, social and governance reasons. In recent years, it has targeted Saudi Aramco because of climate risks, US-based firms overseeing refugee centers linked to human right violations, and other companies tied to Israeli settlements in the West Bank.

The United Nations’ Office of the High Commissioner for Human Rights cited Caterpillar among a number of corporations supplying Israel with military equipment, in a statement released last week. It urged investors with stakes in these companies to “take action.”

KLP’s decision document also referenced a statement from the Norwegian government that the nation’s business community risks contributing to violations of international humanitarian law and human rights if they engage in financial activities related to illegal Israeli settlements.

(Updates with KLP decision document reference to Norwegian government in final paragraph.)

Most Read from Bloomberg Businessweek

• How Jeff Yass Became One of the Most Influential Billionaires in the 2024 Election

• Why BYD’s Wang Chuanfu Could Be China’s Version of Henry Ford

• Musk’s Population Obsession Comes With a Dark History

• Corporate Women’s Gains Fall Victim to Anti-Woke Backlash

• Independence Without Accountability: The Fed’s Great Inflation Fail

©2024 Bloomberg L.P.