A new proposal has emerged that could pave the way for Norway's sovereign wealth fund, considered the world's largest, to invest in certain defense companies linked to nuclear weapons production.
The commission appointed by the Norwegian government presented its report on Thursday as part of a review of the fund's ethical guidelines. If the proposal is accepted, some major Western defense companies currently excluded from the portfolio under existing rules could be brought back into the scope of investment.
The fund's current ethical principles prohibit investments in companies linked to the development and production of nuclear weapons or their components. Within this scope, 14 companies, including Airbus, BAE Systems, Boeing, Lockheed Martin, and Safran, are on the exclusion list.
PROPOSAL FOR EXEMPTION FOR NATO COUNTRIES
The exemption proposed by the commission, chaired by former Norwegian Central Bank Governor Svein Gjedrem, covers manufacturers in countries that are officially recognized as nuclear-armed states under the Treaty on the Non-Proliferation of Nuclear Weapons and are also NATO allies of Norway.
During the presentation of the 434-page report, Gjedrem stated that this change would mean "a large number of British, French, and American arms manufacturers would be included back in the fund."
Despite the potential easing regarding nuclear weapons, the commission recommended maintaining other ethical exclusion criteria related to biological and chemical weapons, landmines, cluster munitions, coal, tobacco, and cannabis.
The report was presented to Norwegian Finance Minister Jens Stoltenberg, a former NATO Secretary General. Stoltenberg described it as a "paradox" that the fund cannot invest in companies that could be critical to Norway's security at a time when Russia is more openly voicing threats to use nuclear weapons and China is expanding its arsenal.
The commission also proposed changes to the structure of the Council on Ethics, which advises the Norwegian Central Bank on managing the fund. Accordingly, the Council would continue to assess whether companies carry a risk of seriously violating ethical standards, but would no longer directly recommend the exclusion of companies from the portfolio.
The proposals will be open for public consultation until January 15, ahead of the government's submission of an assessment to parliament next spring. Some political parties, particularly actors on the left wing, have already reacted to the report.
Norway's sovereign wealth fund holds significant weight in global markets with assets exceeding 2 trillion euros. The fund invests in more than 7,000 companies worldwide and holds approximately 1.5 percent of all shares traded on global stock exchanges.
News Source: 12punto
