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

Oslo: Norway's wealth fund, valued at $2.3 trillion, is set to review its ethical rules following a state-appointed commission's report, one year after divestment suspensions due to US scrutiny. The Trump administration objected to the fund's sale of Caterpillar shares linked to bulldozer usage in Gaza. Norway's parliament subsequently paused ethics-based divestments pending the commission's findings, due Thursday.

The decision, denied as US-concerned, saw no divestments made since the suspension. The fund's operator, Norges Bank Investment Management, now receives all recommendations instead of the board. Finance Minister Jens Stoltenberg emphasized the fund's importance, citing its financing of a quarter of public spending. He acknowledged the fund's concentration in a few US tech giants, posing greater consequences from individual decisions.

The commission's recommendations, crucial for an upcoming white paper, will guide the government. Defense companies may be exempted if nuclear weapons are reconsidered as a deterrent. Critics, including the Norwegian Red Cross, fear lifting the ban legitimizes investing in weapons of mass destruction. Transparency concerns over the fund's divestment reasons have also been raised.