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Limited seats available, first come first served. Let us embark together on this journey toward sustainability! [Click to register] Key points: Norway's sovereign wealth fund ethical guidelines are set to be revised, potentially opening the door for the fund to invest in more Western defense companies. Under current rules, the fund is prohibited from investing in companies such as Lockheed Martin and Boeing because they are involved in nuclear weapons production. Norway will hold a public consultation on the proposals, after which the government will issue a new ethical framework, with parliament expected to vote on the revised plan around mid-2027. On September 20, 2026, a BAE Systems "Hawk" T1 trainer aircraft. BAE Systems has been excluded from the fund managed by Norges Bank Investment Management since 2018.

The $2.3 trillion Norwegian oil fund has for many years been constrained by the country's ethical guidelines, unable to invest in most defense industry companies, but this situation may now change. This sovereign wealth fund currently has assets of approximately 21.8 trillion Norwegian kroner, equivalent to $2.3 trillion, making it the largest sovereign wealth fund in the world. The fund holds about 1.5% of listed companies globally, making it one of the most important investors in global stock markets. In November 2025, amid controversy over the fund's withdrawal from certain Israeli and American company investments, Norway ordered a comprehensive review of the ethical guidelines followed by Norges Bank Investment Management. On Thursday, the independent Gjedrem Committee submitted its review report to the Norwegian Ministry of Finance. The report recommends major adjustments to the fund's defense investment rules, proposing that "Norges Bank must be prepared to handle conflicts escalating into war."

Current ethical rules prohibit the fund from investing in companies such as Airbus, BAE Systems, Boeing, BWX Technologies, and Lockheed Martin, on the grounds that they are involved in nuclear weapons manufacturing. However, the fund still holds some defense stocks, such as a 2.3% stake in Germany's Rheinmetall and a 1.5% stake in Italy's Leonardo. The Gjedrem Committee stated on Thursday that the nuclear weapons-related ban itself should be retained, but its scope of application needs adjustment. The report states: "The fund must not invest in nuclear weapons manufacturers, but if the company is headquartered in a nuclear-weapon state recognized under the Treaty on the Non-Proliferation of Nuclear Weapons and that country is an ally of Norway, then it is not covered by this restriction. Accordingly, several European and American companies that produce components for nuclear weapons may be brought back into the investment universe."

The committee also proposed that investment targets could include companies producing weapons needed for Norway's own national defense; it also recommended eliminating an assessment requirement: no longer evaluating whether the countries using arms company products comply with international humanitarian law. The committee noted that with intensifying geopolitical turmoil, ongoing wars in the Middle East and Ukraine, rising energy security risks, combined with the fund's substantial capital and influence, now is the appropriate time to reassess this ethical framework. "Compared to 2003, the fund is now larger, broader in coverage, and has more channels to engage with corporate management and boards," the report said. "The overseas political environment is becoming increasingly severe, and the fund should make good use of this advantage."

The report also stated: "The rules-based liberal international order is declining. Economic policy is increasingly being used as a tool of foreign policy. In recent years, cooperation between states has become more utilitarian, highly dependent on negotiation and bargaining." The committee warned that in such an environment, other governments could easily view the fund's ethically motivated investment exclusions as official Norwegian government policy. The Norwegian oil fund was established in the 1990s to invest revenue from the country's oil and gas industry. Fund governance involves both the Norwegian Ministry of Finance and the central bank, but investment decisions are made by Norges Bank Investment Management (NBIM); historically, exclusion recommendations were proposed by an independent ethics committee.

The Gjedrem Committee wrote in its Thursday report: "Protests and threats of retaliation from other countries have already emerged. Retaliatory measures could harm this fund as well as other Norwegian interests." US backlash: In September last year, the US State Department told [source] that it was "deeply troubled" by NBIM's decision to divest from American construction machinery manufacturer Caterpillar and five Israeli banks, accusing the fund of basing its divestment on "untenable grounds." NBIM at the time cited "unacceptable risk" of these companies contributing to human rights abuses in Palestinian territories as the reason for divestment. Norwegian Finance Minister and former NATO Secretary General Jens Stoltenberg said at the time that this was not a political decision.

The Gjedrem Committee mentioned on Thursday that with public finances under pressure in many countries, the risk of further external backlash over NBIM's investment choices is rising. The report warned: "High government debt endangers a country's economic stability and also prompts countries to view foreign investors' interest and dividend income as a domestic tax source." Committee members concluded: although the principles underpinning the fund's ethical framework still enjoy broad support, under the current political backdrop, these rules are under sustained pressure. "In the United States and other regions, there are increasing restrictions on shareholders exercising ownership rights," the report said.

The Gjedrem Committee recommended that the ethics committee could be retained but would no longer make investment disposal recommendations to NBIM regarding ethical risks; the committee's function would be limited to analyzing corporate violations of ethical guidelines. The recommendations in this report will not immediately lead to the fund adding or removing holdings, but they pave the way for the fund to invest in a group of European and American defense companies currently prohibited by ethical rules. Norway will next conduct a public consultation on the report's recommendations, and the central bank will submit feedback in January next year. The Ministry of Finance plans to publish a white paper next spring proposing a new ethical framework, and the Norwegian parliament is expected to vote on the revised plan around mid-2027. Until then, the fund's current ethical guidelines and investment exclusion framework remain unchanged.

Svein Richard Brandtzæg, chairman of the fund's ethics committee, said in an email statement on Thursday morning: "The ethics committee has just received the Gjedrem Committee's report. We will carefully study the report, then fully discuss it within the committee, and submit our views during the upcoming public consultation phase." Prior to November 2025, the Norges Bank board was responsible for deciding whether companies should be removed from the investment portfolio or placed on a watch list, with decisions based on recommendations from an independent body appointed by the Norwegian Ministry of Finance—the ethics committee. However, during the Gjedrem Committee's review, Norway introduced interim guidelines under which the central bank board no longer has the authority to add companies to exclusion or watch lists, and may only revoke past exclusion/watch decisions. At the same time, the ethics committee was suspended from making watch or exclusion recommendations until the ethical framework review is completed. These interim rules will remain in effect until parliament completes its vote on the Gjedrem Committee's review report in 2027.

"Other investors will be watching" The Gjedrem Committee's report has been opposed by some human rights organizations. They believe Norway's decision will influence global investment trends. John Peder Egenæs, Secretary General of Amnesty International Norway, said in a statement on Thursday that the proposals "could weaken accountability and credibility, and undermine key human rights protection mechanisms." "Once the world's largest sovereign wealth fund changes its own standards, the impact will not stop at Norway's borders," he said. "Other investors and companies will be watching closely." Grete Herlofson, Secretary General of the Norwegian Red Cross, said investing in nuclear weapons manufacturers is completely incomprehensible from an ethical and humanitarian perspective. "Opening up investment in nuclear weapons manufacturers is a dangerous policy shift that will weaken the international community's consensus on stigmatizing nuclear weapons and reinforce the perception that 'nuclear weapons are acceptable weapons,'" she said. "This will increase the risk of nuclear weapons being used."