Norwegian committee advises fund to invest in nuclear weapons makers — Al Jazeera
In Norway, a government committee has recommended that the world’s largest sovereign wealth fund ease its ethical investment restrictions and allow investments in companies that manufacture nuclear weapons. The fund manages assets worth nearly $2.3 trillion.
As Al Jazeera reports, the committee’s unanimous recommendations were submitted to Norway’s Ministry of Finance. The group was chaired by former Central Bank governor Svein Gjedrem. The committee also proposes granting the central bank, which manages the fund, broader powers to assess ethical risks.
Review of restrictions
The committee proposed reviewing the ban on investments in companies linked to the production of nuclear weapons. The report’s authors cited the deteriorating security situation and Norway’s dependence on NATO’s nuclear deterrence.
The report says the fund could gain the opportunity to invest in companies from the United States, the United Kingdom and France that manufacture nuclear weapons. The committee noted that companies that could be returned to the investment portfolio produce weapons Norway needs for its own defense.
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Other proposals include changing the role of the independent ethics oversight body. This could allow some assessments of potential investments to remain confidential.
Dispute over Caterpillar
The review of the rules is partly connected to the debate after the fund last year withdrew investments from the U.S. construction company Caterpillar. The fund explained the decision by the company’s possible involvement in human rights violations during Israel’s war in Gaza and the occupied West Bank. Washington then put pressure on Oslo, the outlet notes.
The committee believes that decisions concerning the actions of other states should be made through the usual diplomatic channels of the Norwegian authorities, rather than through the fund’s investment policy. The proposals have already been criticized by Norwegian opposition politicians. Analyst Lawrence Loh told Al Jazeera that easing the fund’s stance on nuclear weapons could affect the approaches of other global investors.
