Norway's sovereign wealth fund eyes defense and nuclear weapons investments

An independent committee has recommended that Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, relax its ethical standards to allow investments in certain defense and nuclear weapons manufacturers. The proposal suggests that companies producing nuclear weapons or related components could be eligible for investment if they are based in countries that are both recognized nuclear-weapon states under the Non-Proliferation Treaty and NATO allies of Norway.

This shift would potentially open the door for the fund to invest in major Western defense firms, including those from the United States, United Kingdom, and France, which are currently excluded. The committee, chaired by former central bank governor Svein Gjedrem, framed the recommendation as a response to a changing security landscape, noting that Norway relies on the NATO nuclear umbrella and requires the types of weapons these companies produce for its own protection.

The proposal also suggests shifting the fund's focus from evaluating the actions of states to monitoring corporate conduct, moving state-level assessments to diplomatic channels. While the changes would allow for defense investments, existing exclusions regarding biological weapons, chemical weapons, landmines, cluster munitions, coal, tobacco, and cannabis would remain in place. The recommendations are now subject to public consultation before any government adoption.