Norway's wealth fund using AI to screen for ESG risks

Norway’s wealth fund using AI to screen for ESG risks

FILE PHOTO: Illustration shows AI (Artificial Intelligence) letters and robot hand · Reuters

Reuters

Thu, February 26, 2026 at 8:15 PM GMT+9 1 min read

OSLO, Feb 26 (Reuters) - Norway’s $2.2 trillion sovereign wealth fund, the world’s largest, is using AI to screen companies for risks ‌such as potential links to forced labour and corruption, and ‌help avoid financial losses as a result, it said on Thursday.

One of the world’s ​largest investors, the fund holds stakes in around 7,200 companies globally, owning about 1.5% of all listed stocks. It has often set the pace on environmental, social and governance issues.

The fund’s investments are measured against ‌a benchmark index set ⁠by the finance ministry, with equities tracked against the FTSE Global All Cap index.

Each time that index includes ⁠new companies, the fund’s operator, Norges Bank Investment Management (NBIM), must screen them before they enter the portfolio.

Since 2025, NBIM has used large language models ​to screen ​all companies on the day they ​enter the equity portfolio, rapidly ‌scanning for public information that data vendors typically do not provide.

“Within 24 hours of our investment, the AI tools flag new companies in the fund’s equity portfolio with potential links to, for example, forced labour, corruption or fraud,” NBIM said in its annual responsible investment ‌report, published on Thursday.

“In multiple instances, we ​identified and sold these investments before the ​broader market reacted to ​the risks, avoiding potential losses.”

AI is especially useful for ‌researching smaller companies in emerging markets, ​NBIM said, noting ​that data vendors often offer limited coverage and international media may not report on them.

“News may be limited to small media ​outlets in local ‌languages, and controversies suggesting systemic failures in risk management may ​go unreported in international media,” it said.

(Reporting by Gwladys Fouche ​in Oslo. Editing by Mark Potter)

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin