Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Norway’s sovereign wealth fund—the world’s largest—has divested from Paz Retail and Energy due to the company’s role in supplying fuel to Israeli settlements in West Bank. The move, announced on May 11, 2025, reflects the fund’s sharpened ethical standards targeting companies tied to contested territories.
Why the Fund Took Action
In August 2024, Norway’s Council on Ethics adopted stricter ESG guidelines, specifically barring investments in firms that contribute to the expansion or maintenance of Israeli settlements in West Bank. Paz operates nine gas stations in the area and supplies fuel infrastructure used by the settlements.
The Council stated:
“By operating infrastructure for the supply of fuel to the Israeli settlements on the West Bank, Paz is contributing to their perpetuation. The settlements have been established in violation of international law.”
The divestment is directly linked to this interpretation of international standards.
A Pattern of Withdrawal
This is the fund’s second divestment from an Israeli company since the Gaza war began in October 2023. In December 2024, it dropped telecom firm Bezeq over similar involvement in Israeli settlements in West Bank.
Across Europe, financial institutions are under growing pressure to reconsider investments in firms tied to the occupied Palestinian territories.
Mounting Domestic Pressure
Inside Norway, trade unions like the LO, advocacy groups, and some lawmakers are calling for a broader purge of companies linked to the settlements. The wealth fund—governed by parliament—reviewed 65 Israeli firms and confirmed that most did not meet the exclusion criteria.
Still, the scrutiny is intensifying.
A Global Financial Force
With $1.8 trillion under management and ownership stakes in 1.5% of all listed companies worldwide, Norway’s sovereign wealth fund is a bellwether in ethical investing.
It holds a long-standing reputation for leadership in environmental, social, and governance (ESG) practices. Moves like this carry global weight.
Takeaway
Norway’s sovereign wealth fund has drawn a clear ethical line: it will not invest in companies supporting Israeli settlements in West Bank. With pressure building in Europe and at home, other firms could soon face similar scrutiny.
