Norway’s wealth fund set to overhaul ethical rules after US scrutiny

Norway's wealth fund is poised to revise its ethical guidelines following a review by a state-appointed commission, which is expected to deliver its findings on Thursday. The fund, valued at $2.3 trillion, paused divestments in the wake of US concerns over its investments in companies linked to the conflict in Gaza and the occupied West Bank.

The Trump administration had protested Norway's divestment from Caterpillar shares over the use of its bulldozers in the region. The government defended the suspension, stating it was not motivated by potential US repercussions, as over half of the fund's assets are invested there. Prior to the hiatus, the Council on Ethics, the fund's independent ethical watchdog, suggested divestments and their recommendations were forwarded to the central bank's board for final approval.

Since the suspension, all recommendations have been sent to Norges Bank Investment Management, the fund's operator, with no divestments taking place. Finance Minister Jens Stoltenberg emphasized maintaining the fund's broad investment as a priority, acknowledging the evolving value chain and the concentration of its assets in a few key companies, particularly US tech giants like Nvidia, Apple, and Amazon.

The commission's recommendations will serve as the foundation for the government's annual white paper on the sovereign wealth fund, due in spring 2027. One potential adjustment involves the fund's prohibition on investing in entities manufacturing nuclear weapons or their components, potentially opening the door for investments in major defense companies.

The exclusion list currently includes defense manufacturers such as Lockheed Martin, Boeing, Airbus, BAE Systems, Safran, Thales, and others. Civil society organizations, including the Norwegian Red Cross, argue that lifting the ban could legitimize investments in weapons of mass destruction, a point which Stoltenberg acknowledged in an interview.

The potential removal of the Council on Ethics and the end of public disclosure of ethical decision-making processes has also raised concerns among activists and other investors.