Reduction of Israeli investments by Norway's Wealth Fund due to escalating regional conflicts
Norway's Sovereign Wealth Fund, the Government Pension Fund Global (GPFG), has been actively reviewing its investments in Israeli companies due to concerns over activities in occupied territories, human rights, and international law.
Background
The GPFG's Ethical Council conducts assessments based on criteria such as serious violations of fundamental ethical norms, contribution to the violation of human rights, environmental damage, and other breaches of internationally recognized norms.
Recent Developments
The fund has already divested from a number of Israeli firms, but the exact number and names have not been disclosed. However, it is known that the fund has previously divested from Israeli companies involved in the construction of settlements in occupied Palestinian territories or linked to military activities that are viewed as contributing to human rights violations.
The decision to divest was reportedly accelerated due to the fund's investment in an Israeli jet engine company, known for providing maintenance services to the Israeli military. The GPFG may announce new exclusions after ongoing reviews, focusing on companies that have contracts or operations in contentious regions or sectors like settlement construction, security equipment, and surveillance technologies used in disputed areas.
Example Criteria Leading to Divestment
Direct involvement in building or financing settlements considered illegal under international law, supplying equipment or services to military or security forces implicated in human rights abuses, and environmental damage in occupied territories or unrecognized settlements are examples of criteria that could lead to divestment.
Future Exclusions
An ethics council is currently evaluating whether the fund should divest from five banks. If the council recommends divestment, these banks could be excluded from the fund's portfolio.
Management of Israeli Investments
Following the review and subsequent divestments, the GPFG has decided to manage Israeli investments internally. The investment strategy for Israeli companies will focus on those listed in the equity benchmark index.
Summary
Norway's sovereign wealth fund, the GPFG, is committed to ethical investing and regularly reviews its investments in Israeli companies. The list of divested companies changes over time following new reviews. Upcoming exclusions are announced following specific investigations and ethical council recommendations.
To stay updated on the latest list of Israeli companies divested from or facing upcoming exclusions by Norway's sovereign wealth fund, I recommend checking the official reports or statements released by the fund or Norway's Ministry of Finance. Despite the recent rejection of a motion to divest from all companies operating in the occupied Palestinian territories, the fund has already excluded 11 companies due to the potential risk of contributing to severe norm violations in the West Bank.
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