Norway suspends wealth fund ethics rules to shield Big Tech

Norway's parliament voted to pause “ethical” divestment from its $2.1 trillion sovereign wealth fund while it rewrites the rules, marking an historic moment for the world’s largest investor and raising fundamental questions about its approach to ESG.

- HEIDI TAKSDAL SKJESETH

The measure will allow the sovereign wealth fund to retain stakes in companies including Microsoft, Amazon and other tech giants.

(REUTERS)

The Labour government in Oslo relied on conservative opposition votes to force through the measure, which will allow the fund to retain stakes in companies including Microsoft, Amazon. com. and other tech giants. Under existing guidelines, their links with Israel’s war in Gaza could have forced the fund to divest.

It’s the first time in the wealth fund’s history that Norway has suspended the work of the ethics council. With those guidelines now on hold, Norway is opening the door to a new era for an investor that holds stakes in more than 8,500 companies worldwide and whose moves are tracked by money managers across the globe.

Cecilie Hellestveit, one of five members on the ethics council, said it’s now an open question as to what role the advisory body should play.

“If we put our regular work on hold, this undoubtedly will have consequences,” she told Bloomberg. “It’s unclear how big and what kind.”