Caterpillar Inc (NYSE:CAT) shares dropped slightly in premarket trading after Dutch pension fund ABP divested its entire position in the company, according to a report from state broadcaster NOS on Wednesday.
Prior to the divestment, ABP held a stake worth approximately €387 million in the heavy machinery manufacturer. The move follows ABP’s updated sustainability policy introduced last year, which prioritizes “socially responsible” investments.
The decision to exit the position appears tied to Caterpillar’s activities in Israel. The company provides bulldozers used in demolition operations in Palestinian territories, raising human rights concerns.
The United Nations previously warned Caterpillar that continuing deliveries to Israel could implicate the company in potential human rights violations.
Following the announcement, Caterpillar shares edged down 0.3% in premarket trading, reflecting investor reaction to the divestment.
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