Norwegian Wealth Fund Re-Examines Holdings in Israeli Companies Following the Gaza Conflict

Norwegian Wealth Fund, renowned as one of the world's largest investment bodies with an estimated capital of $1.6 trillion, made headlines by announcing a comprehensive review of its holdings in various international and Israeli companies. This re-evaluation comes in the wake of the recent conflict in Gaza, with the fund citing potential violations of its ethics regulations as the impetus behind this decision.

Headed by Svein Rikard Brantzag, the Norwegian executive leading the foundation's ethics committee, the fund disclosed its intention to scrutinize companies in its vast portfolio for any involvement in the sale of weapons to Israel. Brantzag emphasized the gravity of the situation, asserting that any such involvement could breach the fund's strict ethics laws, mandating investments only in companies not associated with activities contravening international humanitarian law.

The fund, which boasts ownership of 1.5% of the world's traded capital and investments in approximately 8,000 companies, refrained from specifying the entities under investigation. However, Brantzag elucidated that these companies could be of Israeli or non-Israeli origin. Notably, the fund's ethics framework permits investment in arms companies except those engaged in atomic weapons or mines development, and it refrains from investing in tobacco companies. Additionally, it routinely conducts reviews to divest from companies implicated in illegal practices or law violations worldwide, typically announcing such decisions post-share sales to maintain their value.

Brantzag underscored Israel's heightened scrutiny, recalling past instances where the fund divested from Israeli companies operating beyond the Green Line, including notable entities like Shafir Engineering, Ashstrom, Electra, Mebane Real Estate, and Dania Sibus. Recent years have seen the fund terminate investments in Cognyte Software and New-Med, citing similar concerns over human rights violations and disputed territories, respectively.

As of the end of 2023, the fund held shares in 76 Israeli companies, with major investments in Teva, ICL, NICE, Bank Hapoalim, and Bank Mizrahi Tefahot. The fund's latest move coincides with growing calls across Europe for arms embargoes against Israel, with Italy, Spain, Belgium, and the Netherlands taking unilateral actions, and Britain and Canada weighing similar measures.

The Norwegian Wealth Fund's re-evaluation underscores the escalating global discourse surrounding the Israeli-Palestinian conflict and raises questions about the ethical implications of investment in contentious regions.