A new report urges Norway’s sovereign wealth fund to reconsider its ethical investment restrictions, arguing that current limitations may be hindering its ability to address broader financial risks. The proposal suggests that tightening ethical criteria could inadvertently exclude companies making progress on sustainability, while also potentially missing opportunities to influence corporate behavior through engagement. Critics of the fund’s approach have long debated whether strict ethical screens align with its long-term financial objectives. The review raises questions about balancing moral principles with investment performance in one of the world’s largest wealth funds.
The review called for Norway's sovereign wealth fund to lift ethical risk limitations on its investments.
