Norway's $1.7 Trillion Wealth Fund Faces Tougher Ethics Standards Over Israel-Linked Companies
Norway's $1.7 trillion wealth fund is facing stricter ethical guidelines when it comes to investing in companies that aid Israel's operations in the occupied Palestinian territories. The Council on Ethics for the sovereign wealth fund has expanded its definition of unethical corporate behavior, potentially leading to divestment from certain companies.
The fund, known as the Government Pension Fund Global, owns shares in 8,800 companies worldwide and has been a leader in ESG investing. Following the start of the war in Gaza, the fund's ethics watchdog has been reviewing more companies for potential exclusions under the new policy.
Companies like RTX Corp, General Electric, and General Dynamics could be among the companies under scrutiny for their ties to weapons used by Israel in Gaza. The fund currently holds investments worth 16 billion crowns in Israel, representing 0.1% of its total investments.
The updated ethics guidelines stem partly from a recent opinion by the International Court of Justice on Israel's occupation of Palestinian territories. The fund previously divested from nine companies operating in the occupied West Bank.
In conclusion, the Norway wealth fund's stricter ethics standards could lead to divestment from companies involved in Israel's operations in Palestinian territories. This move reflects a growing trend towards ethical investing and could impact the financial performance of certain companies. Investors should stay informed on these developments to make informed decisions about their portfolios.
