Norwegian’s Government Pension Fund Global (GPFG), one of the world’s largest sovereign wealth funds with assets totaling an estimated $1.8 trillion, recently divested from Israel’s Paz Oil Company Ltd, marking another divestment since the Gaza conflict began in October 2023.
Daily Sabah +6
Times of Israel | ynetnews
Paz was recommended for exclusion by the fund’s Council on Ethics due to its operations in Israeli settlements within the occupied West Bank, specifically its infrastructure supplying fuel for these settlements which are considered illegal under international law. By providing such services, Paz contributed to perpetuation of these illegal settlements thereby violating ethical investment guidelines. Quds News Network: 8, Press TV:8, Reuters +7 and ynetnews +7 were all also considered violations.
This case study can be seen here: RNZ8/8 +8 Press TV +8, Quds News Network/Press TV +8
The Times of Israel
This decision follows on the heels of Bezeq’s disinvestment from Israel Telecommunications Company in December 2024 due to their activities within occupied Palestinian territories, reflecting a stricter interpretation of ethical standards adopted in August 2023 by the Fund regarding investments made in companies operating within these lands. Daily Sabah, Press TV and The Times of Israel all published similar editorials as they made similar moves with respect to Bezeq in December.
GPFG’s divestment decision follows a trend among European financial institutions of reevaluating investments linked to Israeli operations in occupied territory, due to increased attention on human rights concerns and international law compliance.
By 2024’s end, GPFG held approximately $2.12 billion invested in 65 Tel Aviv Stock Exchange companies – representing about 0.1% of its portfolio – which corresponded with ethical considerations and international legal standards. Recent actions indicate a growing commitment by this fund towards ethical investing practices.
Jonas Gahr Store commented on the fund’s approach and stressed its emphasis on engagement over divestment. While adhering to ethical guidelines is essential, proactive engagement with companies may lead to more substantial changes than outright divestment can.
Reuters GPFG’s exit from Paz is evidence of the growing influence of ethical considerations on global investment strategies, especially when operating in regions with complex geopolitical and human rights considerations.