Norway’s $2.1 trillion sovereign wealth fund is supporting Microsoft Corp. in a contentious shareholder vote concerning the company’s human rights practices, Bloomberg reported. Some investors had proposed requiring Microsoft to enhance its due diligence on human rights, following reports that its products were used by the Israeli military for mass surveillance of civilians in Gaza and the occupied West Bank.
Norges Bank Investment Management (NBIM), which manages the fund, voted against the proposal ahead of Microsoft’s virtual annual shareholder meeting scheduled for Dec. 5. The fund, which held roughly $50 billion of Microsoft stock at the end of June—about 1.35% of the company—said it was satisfied with Microsoft’s current approach to addressing human rights risks. NBIM is Microsoft’s 10th-largest shareholder, according to Bloomberg data.
“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 said in a statement. The fund added that it evaluates companies based on public expectations regarding environmental and social issues and may consider the pace and direction of change as part of its assessment.
Earlier this year, Microsoft disabled certain software used by the Israeli military after an internal investigation found that data related to mass surveillance of civilians had been stored on Microsoft cloud services, a violation of company rules. Pressure groups such as JLens and ADL have urged shareholders to reject the proposal, labeling it politically motivated and tied to broader calls to boycott or divest from Israel.
The only shareholder proposal NBIM supported would require Microsoft to report on risks associated with operating in countries with significant human rights concerns, a motion it also backed in 2024 but which failed to pass. The fund also voted against re-electing CEO Satya Nadella as chairman, citing its policy that a CEO should not hold both roles simultaneously.
As the world’s largest sovereign wealth fund, NBIM emphasizes active ownership to promote long-term value creation while minimizing negative environmental and social impacts. Its recent high-profile decisions include opposing Tesla CEO Elon Musk’s record pay packages and divesting from Caterpillar Inc. after the company’s equipment was used by Israel in Gaza and the occupied West Bank. The fund recently paused work by its independent ethics council pending a year-long review of its guidelines.
The vote reflects the balancing act NBIM seeks between financial stewardship and ethical oversight, particularly amid politically sensitive human rights issues in global operations, Bloomberg noted.
