2023-12-20 15:05:00
The Norwegian wealth fund has made a significant move by removing the shares of Delek Group from its investment portfolio, citing an “unacceptable” risk of serious ethical violations related to oil exploration off the coast of the Western Sahara. According to a report in “Bloomberg” released yesterday, the fund’s holdings in Delek Group were estimated at 3% and worth 60 million dollars as of the end of 2022.
The decision to divest from Delek Group was based on the recommendation of the Board of Ethics of the Norwegian Foundation. The board pointed out that the agreement of Delek’s subsidiary, New-Med, with Morocco in the coastal region of the Western Sahara is problematic, as Morocco has no legal or sovereign rights over the natural resources in this region. It is worth mentioning that the region was annexed by Morocco in the 1970s, but only a few countries, including the US and Israel, recognize Morocco’s right to the territory.
In December 2022, New-Med signed an agreement with Adarco Energy, whose ownership is in the chain of Yariv Elbaz, giving KA a 37.5% stake in the rights to the Boujdour Atlantique exploration license. The remaining 25% of the rights in the license will be held by the National Ministry of Hydrocarbons and Mines of Morocco. The license is valid for eight years.
The Norwegian wealth fund’s decision to remove Delek Group from its investment portfolio reflects a growing trend among large investors to consider ethical and environmental factors when making investment decisions. This move sends a strong signal to companies that engage in activities perceived to be unethical or in violation of international law, as well as to other investors who may be reevaluating their own portfolios in light of similar concerns.
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