Norway’s sovereign wealth fund, the largest in the world, announced on Tuesday that it has sold all its shares in Bezeq, Israel’s leading telecom provider.
The decision stems from Bezeq’s provision of telecom services to Israeli settlements in the occupied West Bank.
The move follows a stricter interpretation of ethical guidelines by the fund’s ethics watchdog, the Council on Ethics, concerning businesses operating in occupied Palestinian territories.
The $1.8 trillion fund is a global leader in environmental, social, and governance (ESG) investing, holding stakes in 8,700 companies and owning 1.5% of all listed shares worldwide. Bezeq did not immediately respond to requests for comment regarding the decision.
“The company, through its physical presence and 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,” stated the fund’s ethics watchdog in its recommendation. “By doing so the company is itself contributing to the violation of international law,” it added.
Although the watchdog acknowledged Bezeq’s telecom services to Palestinian areas in the West Bank, it concluded that this did not offset the concerns related to its operations in Israeli settlements.
The watchdog’s recommendations are submitted to the Norwegian central bank’s board, which makes the final decision on divestments. Following this process, the fund has now entirely divested from Bezeq.
Prior to the complete sale, the fund had been gradually reducing its stake in Bezeq during the first half of 2024. By the end of June, it held 0.76% of the company’s shares, valued at $23.7 million, down from 2.2% at the start of the year.
The ethics watchdog’s revised interpretation of ethical breaches aligns with the International Court of Justice’s July 2024 finding, which concluded that “the occupation itself, Israel’s settlement policy and the way Israel uses the natural resources in the areas are in conflict with international law.” This finding influenced an August 30 letter the watchdog sent to the finance ministry.
Since the October 2023 war in Gaza, the council has been investigating additional companies potentially breaching its investment guidelines. The fund has previously divested from nine other companies operating in the occupied West Bank. These companies were involved in activities such as building infrastructure in Israeli settlements and providing surveillance systems for the wall surrounding the West Bank.
Faridah Abdulkadiri
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