Norwegian Wealth Fund Tightens Ethical Standards Amid Gaza Conflict

Norway's $1.7 trillion sovereign wealth fund may divest from companies aiding Israel's operations in Palestinian territories due to recently expanded ethical guidelines. The Council on Ethics has identified one company for disinvestment and is evaluating others. The fund's new policy could increase exclusions, focusing on U.S. weapon producers.

Norway's $1.7 trillion sovereign wealth fund may divest from companies that violate newly toughened ethical standards related to Israel's operations in the occupied Palestinian territories.

In an Aug. 30 letter to the finance ministry, the Council on Ethics for the world's largest sovereign wealth fund outlined its expanded definition of unethical corporate behavior. The central bank's board will decide on any recommended exclusions.

One company has already been flagged for disinvestment, and others are being assessed, especially those connected to the Gaza conflict. The fund's scope of exclusions, which focuses on U.S. weapon producers not adhering to international arms treaties, is expected to rise under the new policy.

(With inputs from agencies.)