COMPANY REMOVED: A U.S. investment firm has removed Caterpillar Inc. from three of its popular indexes that track socially responsible investments, citing concerns about the Israeli military’s use of company bulldozers in the Palestinian territories.
QUICK IMPACT: MSCI Inc.’s decision led mutual fund giant TIAA-CREF to divest itself of $72 million in Caterpillar stock from its “Social Choice” fund, which tracks one of MSCI’s indexes. Both decisions were made in March, but only recently disclosed.
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MODIFIED USE: The company has come under scrutiny because of the Israeli military’s use of armored-plated Caterpillar bulldozers. Caterpillar says it does not equip tractors with armor or sell directly to the Israeli military. Instead, equipment is first sold to the U.S. government and then resold to Israel and outfitted for military use.
