Norway's sovereign wealth fund is considering pulling its investments from Israel, following a new interpretation of its ethics policy that emphasizes stricter guidelines regarding companies operating in the occupied Palestinian territories. With assets totaling $1.7 trillion, the fund has faced increasing pressure from Norwegian parliamentarians and NGOs to withdraw investments due to the ongoing conflict in Gaza. As of the end of 2023, the fund held investments worth 15 billion kroner ($1.36 billion) in 76 Israeli companies, accounting for just 0.1% of its total portfolio. The fund's ethics board sent a letter to the finance ministry outlining these changes on August 30, and investigations are underway to ensure compliance with the new ethical standards. The potential divestment has raised concerns within Israel, where the economy relies heavily on international investments.
- The Norwegian fund's move comes amid a broader global trend where universities and financial institutions are reevaluating their investments in light of the humanitarian crisis in Gaza. Activists argue that distancing from the Israeli economy is a necessary step to protest what they describe as actions amounting to genocide against Palestinians. Meanwhile, the Israeli government is reportedly worried about the implications of such divestments, especially as they have previously witnessed the fund withdrawing from companies linked to Israeli settlements in the West Bank. This situation underscores the complex interplay between ethical investment practices and international relations, particularly in regions affected by conflict.
