Ethics Watchdog Targets Global Giants: Norwegian Fund's Next Moves

The Norwegian sovereign wealth fund's ethics watchdog plans to investigate shoemakers, crypto firms, and gambling operators in 2025 for ethical breaches, potentially leading to divestment. The fund, a major global investor, adheres to strict ethical guidelines and already excludes numerous companies for various violations.

Norway's sovereign wealth fund, the world's largest, is set to investigate major shoemakers, cryptocurrency firms, and gambling operators for potential ethical violations next year. The probe could result in the influential $1.8 trillion fund divesting its stakes in these companies.

The fund's ethical guidelines, overseen by Norway's parliament, already exclude 189 companies due to issues like human rights violations and environmental harm. Next year's investigations will primarily focus on working conditions at shoe factories, a subject of scrutiny for years, with major stakes in companies like Nike, Adidas, and Puma.

In addition to footwear companies, the fund's Council on Ethics is also targeting the cryptocurrency and gambling sectors, citing risks like money laundering. The council makes recommendations to the central bank, which manages the fund, to either exclude or engage with these companies to effect change.

(With inputs from agencies.)