Norway Wealth Fund Uses AI to Screen for ESG Risks

Norway's sovereign wealth fund, the world's largest with a valuation of $2.2 trillion, is employing artificial intelligence to screen its portfolio for environmental, social, and governance (ESG) risks. The fund, which holds stakes in approximately 7,200 companies globally and owns about 1.5% of all listed stocks, uses these tools to identify potential links to unethical practices such as forced labor and corruption. By detecting these issues early, the fund aims to mitigate financial losses that often follow such controversies.