Swedish pension money has found its way into an Israeli company that produces white phosphorus, a substance that has sparked human rights concerns due to its use in warfare. According to an investigation by Sweden’s national radio, Ekot, the company, ICL Group, is facing scrutiny for its role in manufacturing materials used in conflict zones.
A Risky Investment?
The revelation that Swedish pension funds, particularly those in the Seventh AP Fund, are invested in ICL Group raises serious questions about the ethical implications of such financial backing. The company, which manufactures white phosphorus along with other products, has come under fire from human rights organizations due to its alleged involvement in supplying materials used in weapons systems, including ammunition.
White phosphorus is a controversial chemical compound. It is allowed under international law for use in conflict zones to illuminate targets or create smoke screens, but it is strictly prohibited in ammunition deployed near civilian populations. When used in warfare, it causes severe burns and has been accused of exacerbating civilian suffering, particularly in densely populated areas like Gaza. Human rights groups have accused the Israeli military of using white phosphorus in attacks that allegedly harm civilians.
AP Fund’s Investment in Question
The Seventh AP Fund, which manages Swedish pension money, has invested heavily in ICL Group. According to the Ekot investigation, the fund owns shares in the Israeli company valued at SEK 100 million, a holding that has grown significantly in recent years. In fact, the fund’s investment in ICL has increased from 1.2 million shares to 1.6 million between 2024 and 2025.
The situation has raised alarms, especially since ICL Group has a history of listing military organizations, including the U.S. Army, as customers. While it remains unclear whether white phosphorus produced by ICL has been used directly in military operations in Gaza or Lebanon, the connection between the company and global military powers with links to Israel raises concerns.
Other Nordic companies tied to Israeli firms involved in the war
A few have drawn scrutiny:
- Kongsberg Gruppen (Norway) has been accused of supplying parts used in F-35 fighter jets deployed by Israel. The connection traces through Nammo, in which Kongsberg holds shares.
- Maersk (Denmark, shipping giant) has faced international campaigns— “Mask Off Maersk”—for allegedly shipping military cargo (including F-35 parts) to Israel or settlements. Following pressure, the company changed screening practices—and formally divested from transporting goods to Israeli settlements—but still ships military gear to the Israeli Ministry of Defence.
- KLP, Norway’s largest municipal pension fund, also divested from Israeli-linked firms. In June 2025, it cut ties with US Oshkosh (vehicles) and German ThyssenKrupp (warships/submarines), both supplying items potentially used in Gaza. Earlier, it had already divested from Caterpillar due to its equipment’s use in occupied territories.
| Actor | Involvement in Israeli wartime activity | Action Taken |
|---|---|---|
| Norwegian Wealth Fund (Oil Fund) | Bet Shemesh Engines (jet engines) | Divesting 11 firms, excluding 6 more |
| Kongsberg Gruppen (Norway) | Supply used in F-35 jets (via Nammo) | Public scrutiny; activists linking to war |
| Maersk (Denmark) | Shipping military cargo (e.g., F-35 parts) | Screening reforms; settlement divestment |
| KLP Fund (Norway) | Oshkosh, ThyssenKrupp (vehicles, warships) | Divested June 2025 |
A Closer Look at the Controversy
When questioned by Ekot about the investment, Mikael Lindh Höök, a representative of the Seventh AP Fund, explained that while the fund had no immediate plans to divest from ICL Group, it would be conducting a thorough review of its holdings in the company. “It’s difficult to pinpoint the exact nature of the allegations,” Lindh Höök said. “No one has explicitly confirmed that ICL’s products are being used in ammunition by the Israeli military. However, if it is proven that their white phosphorus is indeed being used in military conflicts, that would be a serious violation of human rights.”
The statement from Lindh Höök underscores the complexity of navigating such ethical concerns in global investment practices. While the Seventh AP Fund has expressed its intention to examine the issue more closely, the fact remains that Swedish pensioners’ money is tied to a company with a controversial reputation.
Human Rights Concerns
ICL Group’s involvement with military entities and its role in producing white phosphorus have raised ethical questions that go beyond the financial implications for Swedish pension holders. The substance has been implicated in several reports of human rights abuses, particularly during military actions in Gaza, where its use in populated areas has been widely condemned.
The international community has long debated the ethics of supplying military-grade materials to countries involved in ongoing conflicts. The involvement of Swedish pension funds in such investments adds another layer of complexity to this debate, particularly given Sweden’s strong human rights reputation and its commitment to ethical investment practices.
What’s Next for the Seventh AP Fund?
As the investigation continues, the Seventh AP Fund faces increasing pressure to address its connection to ICL Group. While Mikael Lindh Höök has assured the public that the fund will review the matter, it remains to be seen whether this scrutiny will lead to divestment or a broader reassessment of the fund’s investment strategy in relation to companies involved in military production.
For Swedish pension holders, the situation raises an important question: Should pension money be used to support companies linked to controversial industries, especially those connected to warfare? As the investigation unfolds, it is clear that this issue is far from resolved, and it may spark further debates about ethical investing in the future.
In the meantime, human rights advocates continue to watch closely, calling for greater transparency and accountability from both the Swedish pension fund and the companies in which it invests.