Norway temporarily suspends ethical rules to protect tech investments

The Norwegian government has decided to suspend the ethical guidelines governing the world’s largest sovereign wealth fund. The move comes amid concerns that strict adherence to these rules could force a large-scale sell-off of technology stocks worth about $230 billion. The policy shift is intended to prevent a drop in returns and preserve the fund’s stability in an increasingly uncertain global environment.

Why Norway took this step

Norway’s Government Pension Fund Global (GPFG) holds more than $2 trillion in assets and owns around 1.5% of all publicly traded shares worldwide. Until now, its operations were guided by ethical principles that required divesting from companies involved in human rights abuses, armed conflicts, or severe environmental damage.

The reassessment began after the fund’s Ethics Council recommended selling shares in Caterpillar, whose equipment had been used in a conflict zone. The Ministry of Finance called this recommendation excessive: according to the minister, a single controversial case could have forced the fund to sell lucrative stakes in leading technology firms. Such a step, he noted, would have undermined both the portfolio’s profitability and its long-term resilience.

How the fund’s management structure will change

The suspension of the rules does not mean the abandonment of ethical principles but introduces a temporary transitional regime. During this period, the fund will be able to make decisions more quickly and flexibly, without waiting for the Ethics Council’s approval. Key changes include:

• a temporary suspension of previous investment restrictions;
• the creation of a task force to update the code of ethical standards;
• retaining stakes in strategically important companies, particularly in the tech sector;
• adjusting investment policy in response to geopolitical developments;
• revising the criteria for excluding companies from the portfolio.

The Ministry of Finance has instructed the Ethics Council to draft updated proposals within a year. Once the new rules are approved, the fund will return to its permanent framework with a more balanced approach between ethics and economic performance.

What was at stake

Had the previous norms remained fully in force, the fund might have been forced to sell stakes in major global firms — including leading producers of software, electronics, and artificial intelligence. This would have meant divesting assets worth roughly $230 billion and losing a significant portion of annual profits.

The GPFG’s portfolio includes shares in more than 8,000 companies worldwide, with technology stocks generating the bulk of its income. Giants such as Apple, Microsoft, Alphabet, and Amazon together account for about 16% of the fund’s total value. Losing these holdings would not only have reduced returns but also weakened Norway’s influence on global markets.

Consequences for reputation and the economy

The government’s decision has sparked mixed reactions. Investment experts view it as a pragmatic move to safeguard the financial interests of Norwegian citizens, since the fund’s income directly supports the country’s social programs. However, some politicians and human rights groups see the suspension of ethical rules as a step back from responsible investment principles. Possible consequences include:

• higher profitability through the retention of high-yield assets;
• a temporary weakening of the fund’s image as “the world’s most ethical investor”;
• greater dependence on the technology sector;
• increased flexibility in portfolio management;
• potential reassessment of similar ethical frameworks in other nations.

Over the next year, the Ethics Council will prepare a revised version of the rules reflecting new geopolitical and economic realities. In the meantime, the fund will continue to operate under the temporary framework, maintaining its strategic investments and avoiding abrupt market moves. The Ministry of Finance emphasized that the key goal of the reform is to preserve the balance between responsibility and profitability. The final version of the new code is expected to serve as a model of how major state investors can combine ethical standards with financial sustainability in a turbulent world.