Norway’s sovereign wealth fund will adjust its investments in Israel but will not withdraw from them, Finance Minister Jens Stoltenberg announced this week. The decision follows an expedited government review over ethical concerns related to the war in Gaza and the Israeli occupation of the West Bank.
Rapid review targets companies linked to Gaza conflict
The Norwegian government launched a rapid review of the fund’s holdings in Israel amid growing scrutiny of companies linked to the conflict in Gaza and activities in occupied territories. Stoltenberg met with representatives of the Government Pension Fund Global twice in three days to address the matter.
“I see several measures over time, but what can be resolved quickly should be done quickly,” Stoltenberg said at a press conference. He did not specify the nature of the measures but rejected a blanket divestment from Israeli companies. “If we did that, it would mean we part ways with them because they are Israeli,” he added.
EUR 1.83 trillion fund to outline specific changes
The Government Pension Fund Global, worth around EUR 1.83 trillion, is one of the largest sovereign wealth funds in the world. It has a long-standing ethical investment framework that includes exclusions of companies involved in human rights violations, severe environmental damage, and other breaches of international law.
The fund itself has confirmed that it will provide an update on its Israeli investments on Tuesday. While changes are expected, the finance minister’s remarks indicate that the strategy will focus on targeted adjustments rather than a full withdrawal.
Nordic track record on ethical divestment under scrutiny
Nordic countries, including Norway, have historically taken active stances on ethical investment, often leading in the exclusion of companies linked to controversial activities. The EU is also advancing discussions on strengthening due diligence requirements for investors, which could affect how public funds manage holdings in high-risk regions.
The outcome of Norway’s review could influence similar debates in other European countries, particularly as pressure mounts for public funds to align portfolios with international humanitarian and human rights standards.
