Former Norwegian Finance Minister Siv Jensen recently made headlines with the announcement that Norway’s $1.7 trillion wealth fund may need to divest shares from companies that violate new ethics standards relating to businesses aiding 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 the exclusion of certain companies from the fund’s portfolio.
The fund, a global leader in ESG investing, owns shares in 8,800 companies worldwide and wields significant influence in the market. With ongoing investigations into companies involved in the Gaza conflict, the fund’s ethics watchdog is expected to take a more stringent approach towards exclusions.
Companies like RTX Corp, General Electric, and General Dynamics could be affected by the new policy. The fund currently holds investments in Israel across various sectors, but updated legal opinions may lead to further divestment decisions based on ethical considerations.
The fund’s ethical guidelines, shaped by Norway’s parliament, are closely monitored by the Council on Ethics. The recent shift in policy reflects international legal developments regarding Israel’s occupation of Palestinian territories, signaling a stricter stance on corporate involvement in contentious regions.
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