Norway Wealth Fund Deploys AI to Detect ESG Risks Early

Norway’s $2.2 trillion sovereign wealth fund is using artificial intelligence to identify ESG risks, aiming to prevent financial losses from controversial investments.

The world’s largest investor holds stakes in about 7,200 companies, representing roughly 1.5% of all globally listed shares.

Managed by Norges Bank Investment Management, the fund tracks equities against the FTSE Global All Cap index, set by Norway’s finance ministry.

Each time new companies enter the benchmark, NBIM must assess them before adding them to the portfolio.

Since 2025, the fund has used large language models to screen companies immediately upon inclusion.

Within 24 hours, AI tools flag potential links to forced labour, corruption or fraud, based on publicly available information.

NBIM said it has exited certain investments before wider market reactions, helping avoid potential losses.

The technology is particularly valuable in emerging markets, where smaller firms often lack coverage from data providers and international media.

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