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Responsible investments

Ethical guidelines were established for the Government Pension Fund – Global on 19 November 2004. The guidelines build on recommendations made by the government-appointed Graver Committee which presented its report in summer 2003.

The committee identified two ethical obligations for the management of the Government Pension Fund – Global. Firstly, the Fund should be managed with a view to achieving high return that will enable coming generations to benefit from the country’s petroleum wealth. Secondly, the fundamental rights of those affected by companies in which the Fund invests should be respected. This ethical basis is promoted through two instruments: exercise of ownership rights and exclusion of companies from the Fund’s investment universe.

GPFG - responsible investment

In this brochure we present our strategy for responsible investment. It gives an overview of all the work we do to promote sustainable development, including examples that show how we work in practice.

Guidelines for Norges Bank’s work on responsible management and active ownership of the Government Pension Fund Global (GPFG)

Adopted by the Ministry of Finance on 1 March 2010 pursuant to Act no. 123 of 21 December 2005 relating to the Government Pension Fund, section 2, paragraph 2, and section 7.

Guidelines for observation and exclusion from the Government Pension Fund Global’s investment universe

Corporate Governance

According to the Regulation on the Management of the Government Pension Fund - Global § 6, Norges Bank shall exercise ownership rights for the Government Petroleum Fund. The primary objective of the exercise of ownership rights is to safeguard the Fund’s financial interests.

Negative Screening and Exclusion

The Ministry of Finance decides on negative screening and exclusion of companies from the investment universe. A Council on Ethics provides an evaluation of whether potential investments in financial instruments issued by specified issuers are inconsistent with the ethical guidelines.

The Council on Ethics for the Government Pension Fund - Global

The Council on Ethics provides an evaluation of whether investments in specified companies are inconsistent with the ethical guidelines.

The Graver Committee and Ethical Guidelines

In the autumn of 2002, the Government appointed a committee to propose ethical guidelines for the Government Petroleum Fund. The committee, which was chaired by Professor Hans Petter Graver, presented its findings on 25 June 2003.

History

Read more about the history behind the establishment of ethical guidelines for the Government Pension Fund - Global, among other things the Environmental Fund, the Exclusionary Mechanism and the Advisory Commission on International Law.

Three companies excluded from the Government Pension Fund Global

[Press release, Ministry of Finance, 23.08.2010]

The Ministry of Finance has excluded two Israeli companies and one Malaysian company from the portfolio of the Government Pension Fund Global (GPFG).

The Ministry of Finance attends UN-Conference on Responsible Investment

[News story, Ministry of Finance, 24.06.2010]

The UN Global Compact Leader Summit 2010 concentrates on the need to elevate the role of responsible business and investment in bringing about the needed transformation to more sustainable and inclusive markets. At the summit, the UNGC will also present a new guide on responsible business in conflict-affected and high-risk areas. The Ministry of Finance has played an active part in the work to develop this guide.

Observation of companies from the Funds's investment universe

[Editorial article, Ministry of Finance, 23.04.2010]

In some cases there may be doubt as to whether the conditions for exclusion have been fulfilled or how the company's behaviour will develop in the future. In such cases, the Ministry may put the company under observation on the advice of the Council of ethics.

Report on the management of the Government Pension Fund in 2009

[Press release, Ministry of Finance, 26.03.2010]

"Strong performance in 2009 shows that the Government Pension Fund has fared well through the financial crisis. Key in this respect is a strong adherence to the long-term investment strategy of the fund", says Minister of Finance Sigbjørn Johnsen.

Companies that have been excluded, but where the decision to exclude has later been revoked

[Editorial article, Ministry of Finance, 09.03.2010]

Decision on exclusion reversed

[News story, Ministry of Finance, 02.03.2010]

On the basis of the Council on Ethics’ recommendation, the Ministry of Finance has decided to reverse its previous decision to exclude United Technologies Corp. from the investment universe of the Government Pension Fund Global.

GPFG - responsible investment

[Guidelines and brochures, Ministry of Finance, 02.03.2010]

New guidelines for responsible investment practices in the Government Pension Fund Global (GPFG)

[Press release, Ministry of Finance, 02.03.2010]

The Ministry of Finance today adopted two new guidelines for responsible investment practices in the Government Pension Fund Global. “The new guidelines represent follow-up of the evaluation of the ethical guidelines for the Fund that was completed in 2009,” says Minister of Finance Sigbjørn Johnsen. “We retain several important elements from the ethical guidelines, as well as introducing a number of new measures.”

Tobacco producers excluded from Government Pension Fund Global

[Press release, Ministry of Finance, 19.01.2010]

The Ministry of Finance has decided to exclude 17 companies that produce tobacco from the Government Pension Fund Global (GPFG), based on a recommendation from the Fund’s Council on Ethics. The divestment of shares in these companies has now been completed.

Illustration: Government Pension Fund - Global

Exclusion of metallurgical and mining company

[News story, Ministry of Finance, 19.11.2009]

On the advice of the Council on Ethics for the Government Pension Fund – Global, the Norwegian Ministry of Finance has decided to exclude the Russian metallurgical and mining company Norilsk Nickel. The Council on Ethics finds it probable that Norilsk’s operations are contributing to extensive environmental damage.