Norway's parliament is expected to approve a proposal that temporarily suspends the Ethics Council for the country's massive oil fund. The measure would put all recommendations about excluding companies from the fund on hold. This pause will continue until officials establish a new ethical framework for investment decisions.
Sources familiar with the matter describe the move as effectively clipping the wings of the Ethics Council. The council typically advises on whether to exclude companies from the fund based on ethical guidelines.
Norway's Government Pension Fund Global is the world's largest sovereign wealth fund. It manages nearly $1.5 trillion in assets derived from the country's oil and gas revenues. The fund has historically excluded companies involved in weapons production, human rights violations, and environmental damage.
What does this temporary suspension mean for the fund's ethical standards? The move comes amid ongoing debates about how Norway should balance ethical considerations with financial returns. Some politicians argue the current ethical framework needs modernization.
The Ethics Council has previously recommended excluding major companies like Walmart and Airbus over ethical concerns. Its temporary suspension raises questions about whether the fund's ethical oversight might weaken during this transition period.
This development represents a significant shift in how Norway manages the ethical dimensions of its vast wealth fund. The temporary nature of the suspension suggests this is more about restructuring than eliminating ethical oversight entirely.