Norway’s $2.1 trillion sovereign wealth fund backs Microsoft amid shareholder concerns over human rights vetting.
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| The Microsoft logo is displayed on a building in Tromso, Norway, on January 11, 2025. Photo by Jakub Porzycki/Nur/Getty Images |
Norway’s $2.1 trillion sovereign wealth fund has taken a prominent stance in a contentious debate over human rights and corporate responsibility, backing Microsoft Corp. against a shareholder proposal that would have required the software giant to enhance its due diligence on human rights. The issue emerged after reports suggested that Microsoft products were used by the Israeli military for mass surveillance in Gaza and the occupied West Bank.
The fund, officially managed by Norges Bank Investment Management (NBIM), revealed its voting intentions ahead of Microsoft’s annual shareholder meeting, scheduled to be held virtually on December 5. NBIM disclosed on Sunday that it would oppose the proposal, a position in line with its long-standing practice of publishing voting recommendations five days before shareholder meetings.
NBIM holds approximately $50 billion worth of Microsoft stock, representing 1.35% of the company at the end of June. This stake makes Microsoft the fund’s second-largest equity investment, after NVIDIA Corp., and positions NBIM as Microsoft’s 10th-largest shareholder, according to Bloomberg data. The scale of the holding underscores the influence the Norwegian investor exerts on governance and corporate responsibility debates within major global companies.
The decision to vote against the shareholder proposal signals that NBIM is confident in Microsoft’s existing efforts to manage human rights risks. “We will not support a shareholder proposal where the company does not appear to have significant gaps in their management or reporting of the relevant sustainability risk,” NBIM stated. “We assess companies against our public expectations on environmental and social issues. We may consider direction of travel and pace of change as part of our assessments.”
Earlier in 2025, Microsoft disabled certain software used by the Israeli military following an investigation that revealed civilian data collected through mass surveillance had been stored on the company’s cloud services, in violation of internal policies. The incident sparked criticism from advocacy groups and human rights organizations, who argued that Microsoft’s technologies were indirectly facilitating surveillance operations in contested regions.
Shareholder groups, including JLens and the Anti-Defamation League (ADL), had submitted a proposal calling for stricter human rights vetting and reporting. However, these organizations also urged investors to reject the proposal, describing it as politically motivated and aligned with broader movements advocating for boycotts or divestment from Israel.
NBIM’s decision to oppose the proposal reflects its judgment that Microsoft’s current governance measures adequately address human rights risks, while signaling that the fund remains engaged in monitoring companies’ practices in sensitive regions.
The sole proposal the Norwegian fund supported was a measure requiring Microsoft to report on the risks of operating in countries with notable human rights concerns. NBIM also voted in favor of this motion in 2024, although the proposal failed to pass. The fund’s support highlights a nuanced approach: while rejecting measures it deems politically charged or duplicative, it advocates for transparency and risk assessment in regions where human rights are a significant concern.
This approach is consistent with NBIM’s broader investment philosophy, which emphasizes active ownership to foster long-term value creation while minimizing negative social and environmental impacts. The fund’s voting record demonstrates a willingness to challenge corporate practices when they pose genuine governance or ethical concerns, as seen in previous opposition to CEO compensation packages, including Tesla Inc.’s Elon Musk.
In addition to its human rights-related votes, NBIM voted against re-electing Microsoft CEO Satya Nadella as chairman, asserting that the CEO role should be separate from the chairman position. The fund maintains a consistent stance on corporate governance issues, advocating for clear leadership structures and accountability at the board level.
The Norway sovereign wealth fund, the world’s largest, has historically used its equity holdings to influence environmental, social, and governance (ESG) practices globally. Its decisions often attract attention because they combine financial clout with ethical considerations, setting benchmarks for responsible investing.
NBIM’s voting decisions come amid broader scrutiny of the fund’s ethics and oversight mechanisms. Earlier this year, Norway paused the work of its independent ethics council, which advises the wealth fund on responsible investment practices. The review of the council’s guidelines, expected to last a year, reflects ongoing discussions about the fund’s ability to reconcile financial returns with ethical obligations.
The fund has faced criticism from some U.S. lawmakers, particularly after divesting from Caterpillar Inc. in August due to the company’s equipment being used by Israel in Gaza and the West Bank. Such decisions underscore the complex intersection of geopolitics, corporate responsibility, and global investment portfolios managed by sovereign wealth funds.
NBIM’s support for Microsoft in this shareholder dispute has wider implications for global corporate governance and responsible investing. By signaling confidence in Microsoft’s human rights policies while promoting transparency on country-specific risks, the fund demonstrates a balanced approach that considers both ethical standards and practical governance realities.
Analysts note that such decisions can influence other institutional investors, particularly when they involve major tech companies with complex global operations. Microsoft, as a leader in cloud computing and enterprise software, faces scrutiny not only for its products but also for its role in global data management and potential indirect involvement in human rights-sensitive applications.
As Microsoft prepares for its annual shareholder meeting, the vote by Norway’s sovereign wealth fund is likely to set the tone for discussions on human rights, corporate governance, and transparency in sensitive markets. NBIM’s engagement underscores the growing expectation that multinational corporations must proactively assess and mitigate risks related to human rights while maintaining accountability to shareholders.
While the Norwegian fund has sided against proposals it perceives as politically motivated, it continues to champion transparency and responsible business conduct through risk reporting measures. This approach highlights the fund’s ongoing commitment to ethical investing and its role as a global standard-bearer for balancing financial performance with societal impact.
With Microsoft holding a pivotal position in global technology infrastructure, the outcome of this vote and NBIM’s influence may serve as a benchmark for other institutional investors navigating the complex interplay between business strategy, ethics, and human rights compliance.
