Norway's sovereign wealth fund studies divesting shares in firms supporting Israel
(MENAFN) Norway's USD1.7 trillion sovereign wealth fund, the largest in the world, may be required to divest shares in companies that violate a newly expanded interpretation of ethical standards, specifically those related to aiding Israel's operations in the Palestinian territories. This change, proposed by the fund's Ethics Board, could lead to the exclusion of a small number of companies from the Government Pension Fund Global (GPFG), the formal name of the sovereign wealth fund.
On August 30, the Ethics Board sent a letter to the Finance Ministry detailing this broadened definition of unethical corporate behavior. Although the exact companies at risk of divestment were not specified, the Board has already identified one company under this new definition. The central bank's board will have the final decision on these exclusions.
The Ethics Board indicated that the scope of exclusions is likely to increase under this new policy, especially as it continues to investigate companies potentially falling outside the permissible investment guidelines since the war in Gaza began in October. Among the companies that might come under scrutiny are RTX Corp, General Electric, and General Dynamics, which, according to NGOs, manufacture weapons used by Israel in Gaza, where nearly 41,000 Palestinians have been killed during the military offensive.
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