Norway’s $2 trillion sovereign wealth fund will exclude six Israeli companies tied to operations in the West Bank and Gaza after an ethics review, further reducing its exposure to the country.
The fund, run by Norges Bank Investment Management, didn’t disclose the names but said details will be published after divestments are completed.The move follows criticism over the fund’s stakes in Israeli firms linked to defense and settlement activities.
The fund has already sold shares in six other Israeli companies after deciding to limit holdings to firms in its benchmark index.As of Aug. 14, it held $1.86 billion across 38 Israeli companies—down from 61 at the end of June.
Finance Minister Jens Stoltenberg said more exclusions could follow, noting the fund’s ethics council and NBIM will now share information more frequently to flag risks.The critics believe that the only way to stay within the ethical guidelines of the fund is to completely withdraw from Israeli equities.
The Parliament rejected a complete divestment in June but the pressure has been increasing since the September elections. The Norwegian fund operates as the world’s biggest fund to establish ethical investment standards which serve as global leadership.
