Finance
Norway's wealth fund using AI to screen for ESG risks
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: February 26, 2026
Quick Summary
Norway’s $2.2T wealth fund uses large language models to scan new holdings for ESG red flags within 24 hours. The AI helps NBIM flag forced labour, corruption and fraud early, enabling swift divestment and loss avoidance.
Norway’s $2.2T Wealth Fund Deploys AI to Spot ESG Risks in New Holdings
OSLO, Feb 26 (Reuters) - Norway's $2.2 trillion sovereign wealth fund, the world's largest, is using AI to screen companies for risks such as potential links to forced labour and corruption, and help avoid financial losses as a result, it said on Thursday.
NBIM’s AI-Driven ESG Screening
One of the world's largest investors, the fund holds stakes in around 7,200 companies globally, owning about 1.5% of all listed stocks. It has often set the pace on environmental, social and governance issues.
Benchmark and Coverage
The fund's investments are measured against a benchmark index set by the finance ministry, with equities tracked against the FTSE Global All Cap index.
How the AI Screening Works
Each time that index includes new companies, the fund's operator, Norges Bank Investment Management (NBIM), must screen them before they enter the portfolio.
LLMs adopted since 2025
Since 2025, NBIM has used large language models to screen all companies on the day they enter the equity portfolio, rapidly scanning for public information that data vendors typically do not provide.
24-hour flagging window
"Within 24 hours of our investment, the AI tools flag new companies in the fund's equity portfolio with potential links to, for example, forced labour, corruption or fraud," NBIM said in its annual responsible investment report, published on Thursday.
Impact on Portfolio Decisions
"In multiple instances, we identified and sold these investments before the broader market reacted to the risks, avoiding potential losses."
Focus on Smaller, Emerging-Market Firms
AI is especially useful for researching smaller companies in emerging markets, NBIM said, noting that data vendors often offer limited coverage and international media may not report on them.
Local-language and Media Gaps
"News may be limited to small media outlets in local languages, and controversies suggesting systemic failures in risk management may go unreported in international media," it said.
(Reporting by Gwladys Fouche in Oslo. Editing by Mark Potter)
Key Takeaways
- •NBIM uses large language models since 2025 to screen new equity holdings within 24 hours.
- •AI flags potential links to forced labour, corruption and fraud for rapid action.
- •The fund holds stakes in ~7,200 companies, about 1.5% of listed stocks worldwide.
- •Screening augments vendors and is vital for smaller firms in emerging markets and local languages.
- •NBIM screens firms as they enter its FTSE Global All Cap–tracked benchmark portfolio.
Frequently Asked Questions about Norway's wealth fund using AI to screen for ESG risks
1What is the main topic?
Norway’s sovereign wealth fund (NBIM) is using AI, including large language models, to rapidly screen new equity holdings for ESG risks and avoid potential losses.
2How does the AI screening work and how fast is it?
Each time companies enter the fund’s benchmark, NBIM’s AI scans public sources for red flags like forced labour, corruption or fraud, flagging risks within 24 hours of investment.
3Why does this matter for investors?
Early AI-driven detection lets NBIM divest before markets react, reducing downside risk, especially in smaller or emerging-market companies where third‑party data is limited.
