Document shows that the Norwegian wealth fund's ethics watchdog will be scrutinising shoe manufacturers and crypto companies by 2025.

Next year, the ethics watchdog of Norway's $1.8 billion wealth fund will investigate shoe manufacturers, cryptocurrency firms, casino and gambling companies for possible ethical violations, which could result in the fund divesting.

The ethical guidelines of parliament govern the largest sovereign fund in the world, which is responsible for a massive influence on markets, as it holds 1.5% of all listed shares around 8,700 companies.

The Council on Ethics is the ethics watchdog of the fund. It investigates the companies in which the fund invests to make sure that these guidelines are followed. The council will recommend that the fund divest from the companies if they do not meet the guidelines.

The council sent a draft document to the Finance Ministry on October 10 that stated, "In 2025, it will investigate the working conditions of a large number of shoe manufacturers."

Companies are directly responsible for the working conditions in their own operations. Gross, systemic violations of workers' rights may lead to exclusion from the fund.

This plan was not previously known. The plan did not mention any specific companies.

The Council on Ethics said that "the Work Programme for 2025 indicates these are issues that the Council will examine in 2025."

In an email, it stated that "it is not possible for us to predict the results of the investigations."

(source: Reuters)