Norway wealth fund to overhaul ethical rules

Norway is expected to overhaul the ethical rules governing its $2.3 trillion sovereign wealth fund following findings from a state-appointed commission. This move follows a year-long pause on ethics-based divestments.

The suspension of divestments occurred after the Trump administration protested the fund’s previous decision to divest from Caterpillar shares due to the use of the company’s equipment in Gaza and the occupied West Bank. While the Norwegian government denied that the pause was intended to avoid upsetting the United States—where more than half of the fund’s assets are invested—the parliament had voted to halt such actions pending a formal review.

During the suspension, recommendations from the Council on Ethics, the fund’s independent watchdog, were redirected to Norges Bank Investment Management rather than the central bank’s board, resulting in no divestments being executed. Finance Minister Jens Stoltenberg noted that the increasing integration of global value chains makes it difficult to distinguish between civil and military products, emphasizing the need to secure the fund, which finances a quarter of Norway’s public spending.