Alameda County divests from company that sells bulldozers to Israeli military

Caterpillar Inc. manufactures tractors and other heavy equipment sold and used around the world. And like a lot of big companies, Caterpillar’s stock and bonds are frequently included in investment portfolios of pension funds, universities, cities, and counties.

But Caterpillar has also been the subject of intense controversy for over two decades because of its sales to the Israeli military. Israeli soldiers use Caterpillar bulldozers to demolish structures, roads, agricultural fields, and other infrastructure in Gaza and other Palestinian territories. 

On Tuesday, Alameda County Treasurer-Tax Collector, Henry Levy, announced he has sold off most of the county’s investments in Caterpillar and he plans to finalize the county’s divestment soon. 

Levy’s announcement was met with cheers from activists, including the group Bay Area Divest, which includes union organizers, faith leaders, lawyers, academics, economists, tech workers, and healthcare professionals who want the county to divest public funds from “entities that harm our communities and profit from genocide.”

The county’s sale of Caterpillar bonds — essentially loans — amounts to $32 million out of the county’s $9 billion in funds it invests. This money is mostly tax revenue belonging to the county, school districts, and some special districts and it is invested in numerous government and corporate bonds to preserve and grow its value before it’s spent.

Luchi B., a co-founder of Bay Area Divest, said the county’s decision is a small but important step “If we choke off the money, this genocide will end. We know that divesting from Alameda County itself will not change that, but it’s a start.” 

“We are now facing an ongoing genocide facilitated by the federal resources of this government,” said Lara Kiswani, executive director of the Arab Resource and Organizing Center. “If you are a person with a moral compass, this should be a common-sense issue. Ethical investment is ethical, for those who oppose it, that speaks for itself.” 

Alameda County is now the first county in the nation to divest from a corporation because of its role in Israel’s military activities. 

“Caterpillar has long faced criticism for its equipment’s role in the destruction of Palestinian homes, infrastructure, and agriculture, as well as in the U.S. prison-industrial complex, border militarization, and immigration detention centers,” read a statement from Bay Area Divest. In 2003, while attempting to protect a Palestinian home from demolition, American activist Rachel Corrie was crushed to death by an Israeli military Caterpillar bulldozer. 

Not everyone agrees with the county’s decision to divest from Caterpillar or take a stand in relation to Israel’s military actions.

Johnathan Mintzer, the senior director of government affairs for the Jewish Community Relations Council Bay Area, spoke in opposition. 

“There is certainly merit in discussing having a nuanced policy discussion about which industries the county should invest in for purposes of ensuring safety, liquidity, and future income of our assets,” Mintzer said. “But it is clear that it’s not the debate we’re having today. Rather, this meeting is being used as a public forum to make performative ask and complain about specific companies for a range of political reasons, including alleged connections into the Middle East.”

Opponents of the divestment say Alameda County should have nothing to do with international politics and that divestment from targeted companies will harm the county’s finances. Some also say that any criticism of companies that supply weapons and equipment to Israel is an act of antisemitism. 

This decision to divest from Caterpillar follows months of dialogue between county Treasurer Levy — who is the only Jewish elected official in Alameda County — and Bay Area Divest. 

Levy said during Tuesday’s board meeting that he never wants his actions to create fear among “his fellow Jews” or harm any other group. “I am committed to working with community members to ensure fiscal policies of our county create safe and sound impacts within the county, in the communities our investments impact,” Levy said.

An ethical investment policy could lead to further divestment and other actions by the county

The Board of Supervisors, with Levy’s endorsement, also unanimously voted to develop an Ethical Investment Policy that will guide Alameda County and have it consider human rights and environmental issues when making investments. The policy would prohibit investments in entities that perpetrate harm to communities and the planet. The ethical investment policy was first introduced to the board by Supervisor Keith Carson in November. The vote was originally set for Nov. 12, but was postponed by Supervisor David Haubert until this week.

Haubert said there are grey areas around ethically investing and divesting moving forward. “Caterpillar is not a weapon,” Haubert said. “I don’t believe Caterpillar said, please use our tractors in this way. If we divest from all tractors, how are we going to build homes?”

Israel was attacked on Oct. 7, 2023 by Hamas fighters who killed roughly 1,200 people and kidnapped 250. Israel then invaded Gaza, killing over 42,000 Palestinians, destroying vast swaths of the territory, causing disease outbreaks and hunger. The United Nations and others have characterized Israel’s actions as “consistent with genocide,” and the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and others. Israel and its allies, including the United States, have objected to this.

The grim reality in Gaza has invoked movements worldwide to put an end to the war. United Nations Secretary-General Antonio Guterres announced that “Gaza now has the highest number of child amputees per capita anywhere in the world.” 

Levy’s decision regarding Caterpillar is not the first time Alameda County has divested from companies due to concerns around human rights violations. In 1985, Alameda County divested from South Africa, and in 1996, the county barred investments in companies doing business in Burma.