Norway’s Sovereign Wealth Fund Divests from Bezeq Over Settlement Ties

Norway's sovereign wealth fund, the largest of its kind globally, has sold all its shares in Bezeq, Israel's largest telecom company. The decision, announced late on Tuesday, is a direct result of Bezeq's provision of telecom services to Israeli settlement communities in Judea and Samaria.

This divestment follows a new and stricter interpretation of ethics standards by the fund’s Council on Ethics, which now enforces policies more closely scrutinizing businesses linked to Israel's operations in the Palestinian territories. The $1.8 trillion fund, a major player in global investments, holds shares in over 8,700 companies worldwide, and its decisions carry significant weight in the global financial landscape.

The Council on Ethics recommended the divestment, citing Bezeq’s role in supporting the expansion of Israeli settlements by providing services to these areas. While the company also provides telecom services to Palestinian areas, this was not considered sufficient to offset the ethical concerns regarding its involvement in settlements. The watchdog’s decision marks the first divestment recommendation since the policy was revised in August, and more such recommendations may follow.

The fund’s divestment strategy has been increasingly influenced by the findings of the International Court of Justice, which deemed Israel’s occupation and settlement policies in Judea and Samaria as violations of international law. In line with these findings, the Council has sought to sever ties with companies enabling the Israeli government's presence in these disputed territories.

Norway's Role in Global ESG Investment

The fund is recognized as a leader in environmental, social, and governance (ESG) investment practices, setting a precedent for other financial entities. The decision to divest from Bezeq is part of broader global scrutiny over businesses with ties to Israel amid increasing pressure from foreign governments to halt the ongoing conflict in Gaza. In addition, the UN General Assembly recently passed a resolution urging Israel to withdraw from Palestinian territories, signaling continued international focus on the issue.

The divestment also comes at a time of heightened international scrutiny, with pressure mounting on both Israel and the global companies supporting its operations in contested territories. Several European financial entities have made similar moves to sever ties with Israeli companies in the West Bank, reflecting a shift in global financial and political dynamics.