OSLO, Norway — Norway’s parliament on Tuesday voted in favor of pausing ethical divestment by its $2.1 trillion sovereign wealth fund, the world’s largest, while it updates the fund’s ethical guidelines.

The move, proposed by the minority Labour government early on Tuesday, came at a time of intense international scrutiny on the fund’s ethical divestment.

In September, the US State Department said it was “very troubled” by the fund’s decision to divest from construction equipment group Caterpillar CAT.N over the use of the company’s products by Israeli authorities in Gaza and the West Bank.

“The world has changed since the ethical guidelines were first adopted,” Norway’s Finance Minister Jens Stoltenberg told parliament earlier on Tuesday. “The rules need to be reviewed.”

The fund’s ethical guidelines, set by parliament, were first introduced in 2004. They stipulate, among other things, that the fund cannot invest in companies involved in serious violations of individuals’ rights in war or conflict situations.

An independent ethics body investigates alleged breaches and recommends companies for divestment. The decision to pull out is ultimately taken by the central bank’s board.

These recommendations to divest will now be put on hold for a period of roughly a year........

© The Times of Israel