Norway's Wealth Fund Faces Ethical Divestment Dilemma

Norway's parliament is set to reject a call to boycott companies in occupied Palestinian territories, focusing instead on excluding entities violating international law. The decision, part of a wider ethical review of investments, emphasizes nuanced guidelines amidst global tensions, particularly in the wake of Israel's actions in Gaza.

In a significant move, Norway's parliament is expected to reject campaigners' demands to instruct its $1.8 trillion wealth fund to boycott companies operating in the occupied Palestinian territories. Instead, the focus will remain on excluding firms that directly breach international law, according to insiders familiar with the parliamentary process.

The decision comes in the context of heightened scrutiny following the International Court of Justice's recent ruling condemning Israel's occupation as illegal. Despite having previously blacklisted 11 companies, including the Israeli petrol chain Paz, the wealth fund currently maintains substantial investments in Israeli firms, totaling over $2 billion.

Amid intensified pressure since the Gaza conflict, Norway's parliament has decided against a blanket ban. The nuanced guidelines reflect a careful balance between ethical investment and geopolitical complexities, continuing to shape the fund's approach to social governance issues globally.

(With inputs from agencies.)