Norway suspends ethics rules for its $2.1 trillion fund to avoid

The Norwegian government has decided to suspend the ethical rules governing the world's largest sovereign wealth fund, worth $2.1 trillion. The decision was initiated due to concerns that the ethics board's recommendation to sell shares of Caterpillar Inc. in the wake of the Gaza war could set a precedent that would lead to the fund losing its most profitable assets in technology companies worth up to $230 billion. Norway's Finance Minister Jens Stoltenberg noted that it is necessary to avoid such risks.

Source - Minfin

This decision was made after the Ethics Council's recommendation to sell shares of Caterpillar Inc. because the company's equipment is used by Israel to wage war in Gaza. Stoltenberg emphasized that this step could lead to further losses in the fund's portfolio, as it concerns only a small part of the company's business. He also pointed out the need to adapt ethical standards to the new geopolitical environment, emphasizing the contradiction between the ban on investment in the production of components for nuclear weapons and Norway's purchase of weapons from the same companies.

This decision drew criticism from the United States, where some politicians condemned Norway's actions and demanded appropriate sanctions, but Stoltenberg denied that American pressure was the main reason for the change in the fund's policy. The suspension of the ethical rules emphasizes the changes in approaches to investing in the context of geopolitical instability, where national interests are beginning to prevail over ethical norms.