Norway’s sovereign wealth fund could invest in defense companies previously excluded by ethical rules

Norway’s sovereign wealth fund, worth approximately $2.3 trillion, could invest in several Western defense companies following a proposed change to its ethical rules. The recommendation was presented on Thursday by the independent Gjedrem Committee to Norway’s Ministry of Finance.

The change would allow the inclusion of American and European manufacturers that produce nuclear weapons or components for them, provided they are based in a state allied with Norway and a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons. Companies currently excluded include Lockheed Martin, Boeing, Airbus and BAE Systems.

The committee argues that the fund must take into account the deteriorating geopolitical situation, the wars in Ukraine and the Middle East, and Norway’s defense needs. The fund currently holds stakes in Rheinmetall and Leonardo, but the rules limit its access to a large part of the sector.

There will be no immediate change to the portfolio. Norway will hold a public consultation, the central bank will submit its position in January, and the government will propose a new framework the following spring. Parliament is expected to vote on the changes in mid-2027. Human rights organizations have criticized the proposals, saying they could weaken ethical standards and the international stigma associated with nuclear weapons.