Ethical Guidelines Challenge Norway's $1.8 Trillion Fund's Defense Sector Ambitions
OSLO, May 7 (Reuters) - The ambitious push by Norway's opposition parties to revise the ethical investment guidelines of the country's $1.8 trillion sovereign wealth fund, enabling it to invest in major defense companies, is encountering significant resistance. The fund, the largest of its kind globally, is currently barred from investing in companies like Airbus, Boeing, BAE Systems, and Lockheed Martin due to their involvement in nuclear weapons components production, as per parliamentary decisions.
The Conservatives and the Progress Party have been at the forefront of advocating for these changes, arguing that the current restrictions are outdated in the face of escalating military tensions and rearmament across Europe. Their efforts, however, seem to be losing steam, with insufficient support to overturn the existing guidelines under the minority government's watch.
Central Bank Governor's recent remarks have added a layer of complexity to the debate, suggesting that Norway should reconsider what is deemed ethically acceptable in light of the changing global security landscape. This perspective has found resonance among those pushing for the amendment, who argue that excluding companies critical to Norway and its allies' defense capabilities is no longer justifiable.
Despite the opposition's arguments and the introduction of a private member's bill highlighting the perceived hypocrisy in Norway's current stance—given its simultaneous purchase of F-35 fighter jets from Lockheed Martin—the path to revising the fund's investment criteria remains fraught with challenges. The debate underscores the delicate balance between ethical investing and national security interests in an increasingly volatile world.
