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

Oslo, Norway is poised to revamp the ethical guidelines for its $2.3 trillion sovereign wealth fund following a review by a state-appointed commission. This comes in the wake of US scrutiny and a recent pause in divestments due to concerns over potential diplomatic fallout. The Trump administration had taken issue with the fund's sale of Caterpillar shares, citing the company's use of bulldozers in Gaza.

Prior to the suspension, the Council on Ethics, the fund's independent ethical watchdog, had advised on divestments but the board ultimately made the final call. Since then, all recommendations have been directed to the fund's operator, Norges Bank Investment Management, with no divestments taking place. Finance Minister Jens Stoltenberg emphasized the importance of maintaining the fund's broad investment, despite the increasing concentration in a few companies, primarily US tech giants.

The commission's recommendations will shape the government's annual white paper on the fund, expected in spring 2027. One potential change could involve the ban on investing in companies that produce nuclear weapons, possibly reconsidering the exclusion of major defense contractors. Civil society groups, including the Norwegian Red Cross, warn that lifting this ban could legitimize investments in weapons of mass destruction.

Civil society also questions the transparency of the fund's divestment process, expressing concern that the recommendations will no longer be made public.