Alameda County divested $32 million from the development gear firm Caterpillar on Tuesday in response to outrage by activists over the usage of the gear by Israel’s army to construct settlements in Palestinian communities.
With the Board of Supervisors’ vote this week approving the transfer, Alameda County turns into the biggest regional authorities within the U.S. to strip public funds from companies that assist Israel’s occupation of the Palestinian territories of the Gaza Strip and the West Financial institution as a part of a brand new effort to craft an moral funding coverage.
“I have initiated the sale of three bonds from the Caterpillar corporation. Two of our three positions have already been sold,” Alameda County Treasurer Henry C. Levy, the one Jewish elected official within the county, mentioned at Tuesday’s Board of Supervisors assembly. “I am committed to working with community members to ensure the fiscal policies of our county create safe and sound impacts within the county with our investment’s impact.”
The bonds symbolize 0.3% of Alameda County’s $11 billion funding portfolio. Levy mentioned Caterpillar’s investments would develop into a “distraction” to creating a brand new moral funding coverage due to issues across the firm’s fame. He mentioned divestment from different firms within the county’s portfolio cannot be determined till a full evaluation is carried out.
Caterpillar didn’t reply to the Bay Space New Group’s request for remark.
The technique of divestment is heralded by activists for eradicating monetary assist from focused entities by promoting off bonds, contracts, and different investments. Divestment has traditionally been used to oppose apartheid in South Africa, spurring world assist and the eventual collapse of the regime in 1994.
Violence in Gaza escalated after the Oct. 7, 2023 assault by Hamas that killed 1,200 Israelis. Israel’s warfare in Gaza following the assault has killed almost 45,000 Palestinians, in keeping with Gaza’s Well being Ministry.
Across the Bay Space, pro-Palestinian activists have demanded divestment from Israel and plenty of firms that do enterprise with it. For months, the group Bay Space Divest! has known as for divestment from Caterpillar, which they declare knowingly bought its highly effective D9 bulldozer to Israel’s army to be used within the demolition of Palestinian houses to make means for future Israeli settlements. The worldwide nonprofit Human Rights Watch has known as on Caterpillar to droop gross sales to the Israeli army since 2004.
“By challenging corporations like Caterpillar, we are paving the way for a future where human rights are non-negotiable,” mentioned economist Michelle Williams, a consultant of Bay Space Divest! in a press release. “Our success shows that divestment is not just a tool for accountability—it’s a way to reshape public expectations and redefine what we collectively accept as just and ethical.”
On the assembly Tuesday night time, pro-Palestinian supporters spilled out of the Board of Supervisors chambers, forcing officers to open an overflow room. Greater than 100 residents spoke through the public remark interval that prolonged properly into the night.
Supervisor Keith Carson led the Board of Supervisors in calling for an moral funding coverage and the divestment from firms that assist Israel’s occupation efforts. He mentioned he had traveled to the Center East final week and noticed the human toll of the warfare in Gaza and the escalating battle throughout the area.
“Alameda County has a history of making investment decisions in alignment with our values such as the September 1985 unanimous action to divest from South Africa and the September 1996 unanimous decision to bar investing in companies that do business with Burma,” Carson mentioned. “This is an attempt for us to pump the breaks, if not for us to continue to show that we all have to learn to co-exist.
The vast majority of speakers during public comment supported the divestment.
“I want to look you each in the eyes as you vote for or against this, and I will never forget any of these votes,” a District 3 resident who recognized themselves as E mentioned. “I want to watch you adopt the ethical investment strategy.”
Although Levy had already initiated the sale of Caterpillar Inc. bonds, the county treasurer sought extra prescriptive language for a proper moral funding coverage to be utilized for the county. The crux of this situation, he mentioned, got here between constructive screening – investing in favor of industries aligned with the county’s values – versus destructive screening, which he feared might change with political headwinds.
“You begin to put this laundry list of bad things – tobacco, private prisons – you begin to long list of things on it and I don’t think that’s a good way to write policy,” Levy mentioned. “People are here for one particular issue, but next year there might be a different issue. And I don’t want to write a policy specifically about one issue.”
Supervisor David Haubert was skeptical of the divestment technique’s effectiveness in countering Israel’s occupation of Palestine and its use of Caterpillar bulldozers. He questioned whether or not Caterpillar ought to be held to the identical commonplace as weapons producers whose merchandise are utilized by the Israeli army.
“I don’t believe that Caterpillar said, ‘Please go use our tractors this way.’” Haubert mentioned, drawing groans from the viewers. “My fear is, if it’s not one tractor, then it’s another tractor. And where do you draw the line? If you divest from all tractors, then how do we build homes?”
The place to attract the road for divestment would be the central query over the following 90 days for Levy and the Treasury Oversight Committee, who will craft a complete funding coverage to current to the Board of Supervisors. For professional-Palestinin activists, nonetheless, the county’s resolution to proceed with divestment from Israel is essentially the most important victory in over a 12 months of campaigning for an finish to the warfare in Gaza. When the Board of Supervisors gave their unanimous approval, the supervisors’ chambers crammed with the sound of activists’ cheers and the waving of Palestinian flags.
Divestment is only one instrument, Levy mentioned, however he hoped the choice would result in a safer and secure group in Alameda County for Jews and Palestinians alike.
“I feel a great sorrow that long histories of trauma have triggered fear, still trigger fear and other emotions when issues like this emerge,” Levy mentioned. “This decision, and any future divestment decision that our office may make, is about adhering to the values of Alameda County and the principles of a more profound understanding of socially responsible investing.”
