Norway’s $2 Trillion Wealth Fund to Exclude Six Companies Linked to West Bank and Gaza

Norway’s sovereign wealth fund, the largest in the world with assets of around $2 trillion, announced this week that it has chosen to exclude six companies connected to the West Bank and Gaza from its portfolio, following an ethics review of its Israeli investments.

While the fund has not disclosed the names of the firms targeted for exclusion, it confirmed that they will be made public once the divestment process is completed. Specific justifications for each exclusion will also be released at that time. The move comes after the fund initiated an urgent review earlier this month in response to reports that it had acquired a stake in an Israeli jet engine manufacturer that services Israel’s armed forces, including providing maintenance for fighter jets.

The fund’s ethics council, which serves as its watchdog, said it would continue to review Israeli companies on a quarterly basis. Exclusions are made on the basis of recommendations from this council.

The fund also stated that it had separately sold shares in several other companies unrelated to the ethics review. That decision followed last week’s announcement that the fund would only retain positions in Israeli companies included in its benchmark index.

As of August 14, the wealth fund held investments worth 19 billion Norwegian crowns ($1.86 billion) across 38 companies listed in Israel — a notable reduction from the 61 companies in which it was invested as of June 30. The fund said the number would decline even further once the six exclusions based on ethical considerations are finalized.

In parallel, the fund said last week it was terminating contracts with all three of its external asset managers who had been responsible for handling portions of its Israeli portfolio.

The debate over the fund’s approach to Israel has been intensifying in Norway. In June, the Norwegian parliament rejected a proposal calling for the fund to divest from all companies operating in the occupied Palestinian territories.

By fLEXI tEAM