Norway commission proposes overhaul of $2.3 trillion wealth fund’s ethics rules

On October 15, Reuters reported that a government-appointed commission recommended allowing Norway’s $2.3 trillion sovereign wealth fund to invest in major Western defense companies currently excluded for involvement in nuclear weapons production. The proposal could reopen tens of billions of dollars of investment and would also reduce the independent Council on Ethics from recommending divestment to supplying analysis, while giving the central bank greater discretion over action and publication. Norway’s finance ministry is expected to make its own proposals in spring 2027, so the recommendations do not yet change the fund’s mandate. Boards, asset managers and counsel should watch the governance process because it tests whether geopolitical pressure can alter exclusion criteria, escalation authority and transparency without abandoning the fund’s stated ethical framework.