Norway’s $2 Trillion Oil Fund Turns to AI for Ethical and Reputational Risk Screening

preCharge News BUSINESS — Norway’s sovereign wealth fund, one of the world’s largest investors, said Thursday it is now using artificial intelligence to screen investments for potential ethical, governance, and reputational risks.

The fund, managed by Norges Bank Investment Management (NBIM), was established in the 1990s to invest revenue from Norway’s oil and gas industry and is valued at roughly $2.2 trillion.

AI Integrated Into Responsible Investment Strategy

Governance and Sustainability Insights for Portfolio Managers

In its annual responsible investment report, NBIM said it has begun using AI tools to provide governance and sustainability insights to portfolio managers, expanding the scope and speed of its risk analysis.

The technology enables “faster identification of material risks,” the fund said, by scanning a much broader range of public information than traditional data providers.

NBIM manages investments in more than 7,200 companies across 60 countries, representing roughly 1.5% of all publicly listed global equities.

Use of Large Language Models Expanded in 2025

AI Screens New Investments Within 24 Hours

A spokesperson for NBIM told preCharge News that its ESG risk monitoring team began using Anthropic’s Claude AI model in November 2024. Since then, it has become “an important tool” in monitoring ESG risks across the portfolio.

In 2025, NBIM deployed large language models to screen every company on the first day it enters the fund’s equity portfolio.

“Within 24 hours of our investment, the AI tools flag new companies … with potential links to, for example, forced labor, corruption or fraud,” the report said.

NBIM said the system has already helped it identify risks before they were widely reported, allowing the fund to exit positions ahead of broader market reactions.

Emerging Markets a Key Focus for AI Monitoring

Filling Information Gaps in Local and Non-English Media

The fund said AI screening has proven particularly valuable for analyzing smaller companies in emerging markets, where reporting may be limited to local-language outlets or niche publications.

“These tools help us rapidly scan a wide range of public information that goes beyond what data vendors typically cover,” NBIM said, adding that AI-generated summaries provide critical context for human review.

Fund Leadership: ESG and Financial Performance Are Linked

‘Artificial Intelligence Is Changing How We Work as an Investor’

NBIM CEO Nicolai Tangen said the use of AI reflects the growing complexity of global investing.

“Artificial intelligence is changing how we work as an investor,” Tangen said, adding that sustainability and governance “are inseparable from financial performance” in an increasingly uncertain world.

Portfolio Size and Key Holdings

Heavy Exposure to U.S. Markets

Nearly 40% of NBIM’s investments are in U.S. equities. Its largest holdings include stakes in Nvidia, Apple, and Microsoft.

The fund also invests in fixed income, real estate, and renewable energy infrastructure.

In 2025, NBIM reported an annual profit of 2.36 trillion Norwegian kroner, equivalent to about $246.9 billion.

Ethics Decisions Spark Political Controversy

U.S. Criticism Over Divestments

Some of NBIM’s ethics-driven divestments drew criticism in 2024 and 2025, including from the White House.

The U.S. State Department said it was “very troubled” by the fund’s decision to exit investments in Caterpillar and five Israeli banks over concerns tied to alleged rights violations in Palestinian territories.

Norway’s finance minister Jens Stoltenberg responded by stressing the decisions were “not political.”

Ethical Framework Under Review

Temporary Limits on Exclusions and Oversight

Following the controversy, Norway introduced temporary guidelines limiting Norges Bank’s authority to exclude companies from the fund. The Council on Ethics was also stripped of its ability to recommend exclusions until a government-appointed review is completed later this year.

“The conflict in Gaza and the discussions about the fund’s ethical framework demonstrated how complex and challenging this can be in practice,” Tangen said.

“While the framework is under revision, we continue our responsible investment work, focusing on what is financially material.”