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Decision to oust Caterpillar from influential ethical investing index linked to Israeli use of tractors - Israel News | Haaretz Daily NewspaperThe sale of Caterpillar tractors to Israel was a factor, but not the determining one, in the delisting of the company from an influential index that prioritizes good governance and human rights.The move, however, is poised to further complicate the difficult ongoing conversation about Israel taking place between American Jewish gruops and the Presbyterian Church (USA).
A senior official at MSCI-ESG, a subdivision of MSCI, an investment advice firm, said Caterpillar already had a low rating before its delisting earlier this year, in part because of its association with the Israeli armys use of the tractors in the West Bank and past use in the Gaza Strip. The role of Israels use of the tractors in the decision also suggests that a sustained campaign by pro-Palestinian groups has had some effect, although officials at MSCI-ESG and one of its clients, the TIAA-CREF pension fund, deny succumbing to direct pressure.
TIAA-CREFs divestiture amounted to $72 million in funds, dwarfing previous divestitures by liberal religious groups such as Friends Fiduciary, a Quaker group that divested $900,000.