Norway's sovereign wealth fund, the largest in the world with assets exceeding €2 trillion, may soon be permitted to invest in companies that manufacture nuclear weapons. A government-appointed commission published its recommendation on Thursday, proposing a revision to the fund's ethical guidelines that currently bar such investments.
The fund, which manages Norway's oil and gas revenues, has long excluded firms involved in the production of nuclear arms. Under the existing rules, 14 companies are blacklisted, including major Western defence contractors such as Airbus, BAE Systems, Boeing, Lockheed Martin, and Safran. The proposed change would allow investments in nuclear weapons makers based in countries recognised as nuclear-weapon states under the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and that are also NATO allies of Norway.
Presenting the 434-page report, the commission's chair, former central bank governor Svein Gjedrem, explained that this would bring several British, French, and American arms manufacturers back into the fund's portfolio. The recommendation comes at a time when European security is under renewed strain, with Russia's threats to use nuclear weapons and China's expanding arsenal.
Security versus ethics
Finance Minister Jens Stoltenberg, a former NATO secretary general, acknowledged the tension at the heart of the proposal. He noted "the paradox" that the Norwegian fund cannot invest in companies that could be crucial for Norway's security, even as geopolitical risks escalate. The commission's report is now open for public consultation until 15 January, after which the government will present its assessment to parliament next spring.
While the proposed exemption would apply only to nuclear weapons makers in NPT-recognised nuclear states that are NATO allies, other ethical exclusions remain intact. The commission recommended keeping bans on investments in companies involved in biological and chemical weapons, landmines, cluster bombs, coal, tobacco, and cannabis.
The report also suggests changes to the Council on Ethics, the independent body that advises Norway's central bank, which manages the fund. Under the new framework, the council would continue to assess the risk of companies violating ethical standards but would no longer have the power to directly recommend their exclusion—a power that has already been suspended pending the review.
The proposal has drawn criticism from some political quarters, particularly on the left. A Green Party official described the recommendation as "utterly senseless," reflecting the deep divisions over whether the fund should prioritise ethical purity or strategic necessity.
Norway's sovereign fund is a major global investor, and any change to its ethical guidelines could have significant implications for defence markets and corporate behaviour. The debate also touches on broader questions about Europe's defence industrial base and the role of institutional investors in supporting it.
As European nations grapple with rising security threats, the Norwegian proposal highlights the evolving relationship between finance and defence. Similar discussions are taking place across the continent, where governments are weighing the need to bolster military capabilities against long-standing ethical commitments.
The outcome of Norway's consultation will be closely watched, not least by the defence companies that could benefit from renewed investment. For now, the fund's managers and the Norwegian government must balance the demands of security with the principles that have guided the world's largest sovereign wealth fund for decades.
