The Church of England Ethical Investment Advisory Group has recently decided to consider whether to continue its considerable investment in Caterpillar - a company working in Israel. The construction company was criticised by the United Nations for allegedly being involved in human rights abuses in the Occupied Palestinian Territories.

According to the Church’s ethical investment policy, investment in arms companies or companies making "weapons platforms" such as naval vessels or tanks are strictly prohibited.

The UK think-tank Ekklesia commented that a report from an anti-poverty campaign group - War on Want - claimed that Caterpillar bulldozers have been used in the construction of Israel’s Separation Wall, ruled illegal by the International Court of Justice in July 2004. In addition, thousands of Palestinian homes and vast swathes of agricultural land were said to have been destroyed by the Israeli military using armoured Caterpillar D9 bulldozers.

War on Want has welcomed the Church of England’s meeting to consider divestment from Caterpillar. John Hilary, Director of Campaigns and Policy at War on Want, said to Ekklesia, "Caterpillar continues to supply the Israeli army with its bulldozers in the full knowledge that they will be used as military weapons against the Palestinian people. By breaking links with Caterpillar, the Church of England can send a strong signal that corporate complicity in human rights abuses is unacceptable."

The Church of England Ethical Investment Advisory Group was established in 1994. It offers practical advice in a theological context and seeks to promote high standards of corporate behaviour and the principles of integrity, accountability and transparency in corporate life. The Group aims to develop an appropriate ethical investment policy for the Church. The Group produces an annual report to be presented to the General Synod in July.

The Church of England’s decision follows the heated discussions over the divestment among the Christian church in USA. According to Ekklesia, the Presbyterian Church (USA) agreed last year to start a process of divestment from companies which benefit from Israel’s military occupation of Palestine, including Caterpillar, and the United Church of Christ will vote this summer on whether to follow the Presbyterians’ lead.

Others, such as the United Methodist Church and the Episcopal Church have also supported shareholder actions calling on the company’s directors to suspend sales to the Israeli army.