This article first appeared on GuruFocus.
Norway’s $2.1 trillion sovereign wealth fund just introduced a new tension point around Microsoft (NASDAQ:MSFT), taking a stance that could be read as both stabilizing and quietly disruptive. Norges Bank Investment Management, which held about $50 billion of Microsoft shares at the end of June, voted against a proposal pushing the company to reassess its human-rights due diligence after reports that Israeli military units used Microsoft products for mass surveillance in Gaza and the West Bank. NBIM suggested it tends not to back proposals when a company does not appear to have major gaps in managing sustainability risks, pointing to Microsoft’s own steps earlier this year, when the company disabled certain software used by the Israeli military after an internal investigation flagged data-storage violations on its cloud services.
Yet the fund did not simply rubber-stamp management’s positions. NBIM broke ranks on one shareholder proposal, supporting a request for Microsoft to report on risks tied to operating in countries with significant human-rights concernsa repeat of the vote it cast in 2024, even though the motion did not pass. It also withheld support from the re-election of Satya Nadella as chairman, arguing that a chief executive should not simultaneously hold the top board seat. Advocacy groups such as JLens and the ADL have urged investors to vote down the human-rights proposal they view as politically motivated, adding to the swirl of pressure ahead of the company’s Dec. 5 virtual meeting.
This moment arrives as Norway’s fund is reviewing its own ethics framework after pausing the work of its independent council, a move that followed political criticismmost notably from US lawmakersafter its divestment from Caterpillar over the use of its armored bulldozers in Gaza and the West Bank. NBIM’s record includes high-profile stands such as opposing Tesla (NASDAQ:TSLA) CEO Elon Musk’s record pay packages, part of its broader approach to shaping long-term value while navigating rising geopolitical scrutiny. With Microsoft as its second-largest equity position after NVIDIA (NASDAQ:NVDA), the fund’s mixed voting signals could be interpreted as a calibrated attempt to reinforce its expectations on governance and sustainability while acknowledging the complex terrain the company now operates in.
