Claiming ‘Ethics Concerns,’ Norway’s Sovereign Fund Divests From Israeli Telecommunications Company

Latest Developments

• Norwegian Government Pension Fund Divests From Israeli Company: Norway’s sovereign wealth fund – the world’s largest, with control of one percent of global stocks – divested all its shares in Israel’s largest telecommunication company, Bezeq, on December 3, claiming that Bezeq’s provision of services to Israeli communities in the West Bank violates its ethics standards. The Council on Ethics, the watchdog group that sets standards for the fund, said that it recommended divestment from the company because Bezeq’s “provision of telecom services to Israeli settlements in the West Bank is helping to facilitate the maintenance and expansion of these settlements, which are illegal under international law.”

• New Guidelines Targeting Israel Adopted After Hamas Massacre: The divestment comes just over two months after the council adopted a new set of rules targeting companies that conduct business in the West Bank or Gaza, as well as companies — mostly American — that make weapons used by Israel. The council began reviewing its standards following the start of the war sparked by Hamas’s October 7, 2023, massacre in southern Israel. The fund had previously divested from nine other Israeli companies operating in the West Bank.

• Fund Divested From Bezeq Twice in 2024: The wealth fund had already cut the number of its shares in Bezeq from 2.2 percent at the beginning of 2024 to 0.76 percent. Representatives for Bezeq said that divestment from the small number of shares owned by the fund would not affect the company and that its work in Area C of Gaza was in line with provisions in the 1993 Oslo Accords. The company also provides telecom services to Palestinian areas of the West Bank. Along with Spain and Ireland, Norway recognized Palestine as a state in May.

FDD Expert Response

“Declaring it unethical to deliver telecommunications service for Jews based on where they live is inherently antisemitic. Sadly, these sorts of antisemitic assumptions are running rampant throughout the environmental, social, and governance (ESG) movement, and we see them manifested as negative ESG ratings at companies like MSCI today. We should be clear-eyed that Norway is engaging in economic warfare, and we need to start exploring our policy options to respond in kind.” — Richard Goldberg, Senior Advisor

“This woefully antisemitic decision by the largest single owner in global stock markets is a declaration that investment is only ‘ethical’ if Israeli companies and consumers are targeted. Norway’s sovereign wealth fund has over $40 billion invested in companies based in China — a country that operates concentration camps for its Uyghur Muslim minority — yet in this case, any ethical qualms have disappeared.” — Ben Cohen, Senior Analyst and Rapid Response Manager

FDD Background and Analysis

“What’s Driving MSCI’s Anti-Israel ESG Ratings,” by Richard Goldberg

“What’s the Matter With Norway?” by Orde Kittrie

“Amid Tensions With Israel, Spain Requests to Join ICJ Case Targeting Jewish State,” FDD Flash Brief