Norway’s sovereign wealth fund, the world’s largest with $1.8 trillion in assets, has divested all its fixed income investments in Mexico’s state-owned oil company, Pemex, due to concerns over corruption risks. The decision follows investigations by the fund’s Council on Ethics, which uncovered multiple allegations of corruption involving Pemex employees, including a former senior executive, spanning from 2004 to 2023.

Operating under strict ethical guidelines established by Norway’s parliament, the fund is recognized for its commitment to environmental, social, and governance (ESG) principles. The divestment from Pemex underscores the fund’s stance against corruption and its dedication to responsible investment practices.

Pemex, burdened with approximately $97.3 billion in financial liabilities, has been reliant on government support to manage its debt obligations. In 2025, the Mexican government plans to allocate around $6.7 billion to assist Pemex in covering its debt, contingent upon the company improving its balance sheet by an equivalent amount.

This move by Norway’s wealth fund highlights the growing emphasis on ethical considerations in global investment decisions and the challenges faced by state-owned enterprises in maintaining transparency and accountability.

Source: Reuters