The Norwegian wealth fund, one of the largest investment bodies in the world, announced that it is "reassessing" its investments in several global and Israeli companies that supply arms to Tel Aviv for use in its war against Gaza, according to the Israeli newspaper "Globes." The fund, which has an estimated capital of $1.6 trillion, announced this review earlier this week, following potential violations of its ethical guidelines.
Sven Richard Brantsag, who heads the fund's ethics committee, stated that the reason for the reassessment at this time is due to "the seriousness of the violations" that are being observed. In an interview with Reuters, Brantsag explained that the fund, which owns 1.5% of the market capitalization in the world's largest stock exchanges and invests in a total of 8,000 companies, will review whether any of its investments include companies that sell weapons to Israel used in Gaza.
Brantsag noted that if this is confirmed, it could result in divestment from these companies, as this would contravene the fund’s ethical laws, which require it to invest in companies that are not involved in activities that violate international humanitarian law. He did not specify which companies are currently under consideration, but mentioned that they "could be either Israeli or non-Israeli," according to Globes.
According to the fund's ethical guidelines, it may invest in arms companies, except those involved in producing nuclear weapons or landmines. The fund also does not invest in tobacco companies. It continuously reviews its investments to divest from companies associated with illegal practices and human rights violations around the world. Typically, it publishes its decision to terminate investment after selling its shares, in order to preserve their value.
The Norwegian official stated, "The focus on Israel has become significantly greater than before." The fund has previously divested from Israeli companies that operated outside the Green Line, such as Shafir Engineering, Ashtrom, Electra, Mibani Real Estate, and Dania Seabuss. At the end of 2022, the fund announced it had divested from the Israeli software company Cognyte Software for similar reasons. In each of these cases, the fund indicated that continued investment in these companies posed an "unacceptable threat" to human rights.
