In a move aimed at mitigating potential risk, Norway’s sovereign wealth fund has sold all its fixed income investments in Mexican state oil firm Pemex due to concerns over corruption allegations.
According to a statement issued by the Council on Ethics, which serves as the ethics watchdog for the fund, investigations have revealed that Pemex may be linked to multiple instances of alleged corruption between 2004 and 2023. The council’s findings highlight the company’s alleged involvement in bribing employees, including a former senior executive.
The Norwegian government’s $1.8 trillion wealth fund, which holds around 1.5% of listed shares across nearly 9,000 global companies, operates under strict guidelines set by Norway’s parliament. As a leader in environmental, social and governance (ESG) investing, the fund prioritizes transparency and accountability.
The sale comes as the fund continues to expand its influence globally, with investments spanning various sectors and industries. Pemex was unavailable for comment outside of regular business hours, but the move is seen as a significant step towards maintaining the fund’s reputation for responsible investing.
The Council on Ethics emphasized the seriousness of the allegations against Pemex, stating that the company’s actions constitute an “unacceptable risk” to the fund’s investments. The decision highlights the importance of upholding ESG principles in global investing and underscores Norway’s commitment to transparency and accountability in its wealth management strategy.
Source: Reuters
