Norway Sovereign Wealth Fund May Withdraw Investment from Companies Supporting Israel War

RTX, General Dynamics, General Electric Under Watch
$1.41 Billion Investment in 77 Israeli Companies

Norway's sovereign wealth fund (NBIM), the world's largest managing assets worth $1.7 trillion (approximately 2,282 trillion KRW), may divest from companies supporting businesses in the Israeli-occupied Palestinian territories, major foreign media reported on the 3rd (local time).

The NBIM Ethics Council expressed this position in a letter sent to the Norwegian Ministry of Finance on the 30th of last month, summarizing the definition of unethical corporate activities.

Smoke is rising after an explosion in Gaza Strip. [Image source=Reuters Yonhap News]

The Ethics Council did not specify the number or names of companies targeted for stock sales in the letter. However, it stated that one company has already been identified as a divestment target under the new ethical guidelines, and several more companies may also be subject to this.

The final decision rests with the board of Norges Bank, which manages the fund. The board does not always follow the NBIM Ethics Council's recommendations and sometimes requests companies to make corrections. NBIM holds 1.5% of the global publicly listed companies' shares, exerting significant influence on the world financial market. It particularly emphasizes corporate social responsibility in its investment decision process.

Since the outbreak of war following the surprise attack by the Palestinian armed group Hamas on Israel in October last year, the NBIM Ethics Council has been investigating whether there are companies outside the permissible investment scope. The Ethics Council wrote in the letter, "The range of companies excluded from investment is expected to increase somewhat under the new guidelines."

Foreign media speculated that US defense contractors RTX, General Dynamics, and General Electric (GE) could be monitored by the NBIM Ethics Council. These companies are known to have produced weapons used by the Israeli military in the Gaza Strip.

Currently, NBIM also invests in a considerable number of Israeli companies. As of June 30, NBIM was estimated to have invested $1.41 billion (approximately 1.8925 trillion KRW) in 77 Israeli companies across real estate, banking, energy, telecommunications, and other sectors. This amount accounts for 0.1% of NBIM's total investments.