Monday, 10 November 2025
Norway has decided to temporarily scale back part of the screening process that governs which companies its sovereign wealth fund may invest in, opening the door to a review of how ethical rules should function in a more politically charged global environment.
The Government Pension Fund Global, created to invest revenue from North Sea oil production, is managed by Norges Bank’s investment division. The fund exists to safeguard national wealth and help finance future public expenditure, including pensions. Over the past two decades it has become the world’s largest sovereign wealth fund and a significant shareholder in global financial markets. According to public disclosures, the fund holds stakes in thousands of companies and owns just under 1.5% of all publicly listed equities worldwide.
Norway has long applied ethical guidelines that allow certain companies to be excluded due to environmental, social or governance concerns. In recent months, however, those rules have sparked tensions, particularly after the fund divested from firms linked to activities in politically sensitive regions. The move prompted criticism from several U.S. lawmakers who viewed the exclusions as politically motivated. During the subsequent parliamentary debate in Oslo, supporters of the rule review argued that Norway must avoid triggering diplomatic disputes through investment decisions.
The new approach does not abandon responsible investing, but it pauses some exclusion decisions while Parliament reassesses the criteria. Lawmakers argued that overly rigid rules might force the fund to sell positions in major global companies—especially in the technology sector—where the fund has some of its strongest returns.
The fund’s recent voting stance at Tesla illustrates the balance Norway is trying to strike. It holds slightly over 1% of the carmaker’s shares and voted against Elon Musk’s large pay package, citing concerns about governance and the concentration of decision-making power. Although its vote did not carry the day, the decision was consistent with the fund’s long-standing emphasis on board accountability.
Since 1998, the fund has generated an average annual return of roughly 6–7%, reinforcing Norway’s belief that responsible, long-term investing can support public finances while maintaining influence on global markets.
