Historical archive

Tobacco company excluded from the Government Pension Fund Global

Historical archive

Published under: Stoltenberg's 2nd Government

Publisher Ministry of Finance

– and a defense company re-included

The Ministry of Finance has excluded the Chinese company Shanghai Industrial Holdings Ltd. from the investment portfolio of the Government Pension Fund Global on account of its tobacco production. The Ministry has also decided to revoke its decision to exclude a US company that no longer produces components for cluster bombs.

The Ministry of Finance has excluded the Chinese company Shanghai Industrial Holdings Ltd. from the investment portfolio of the Government Pension Fund Global on account of its tobacco production. The Ministry has also decided to revoke its decision to exclude a US company that no longer produces components for cluster bombs.

The decision was based on the recommendations of the Fund’s Council on Ethics.

In October 2009 the Council on Ethics submitted a recommendation to exclude 17 companies that produce tobacco from the Fund’s investment portfolio. All the companies were classified as tobacco producers by the Fund’s index provider. The recommendation stated that there might be companies in the Fund’s investment portfolio that are involved in several different industries including tobacco production, but that such companies would still have to be excluded even when tobacco production represented only a small proportion of their total activities. In a review of the Fund’s portfolio with the aim of identifying such companies, the Council found that Shanghai Industrial Holdings Ltd. might have been involved in tobacco production, and in a letter in September 2010, Shanghai Industrial Holdings Ltd. informed the Council that its wholly owned daughter company Nanyang Brothers Tobacco Company Ltd. did in fact produce tobacco. The Council has therefore recommended that Shanghai Industrial Holdings Ltd. should be excluded from the Fund’s investment portfolio.

No longer a producer of cluster munitions
The decision to exclude the US company L-3 Communications Holdings from the Fund’s portfolio has been revoked because it no longer produces components for cluster munitions.

On 16 June 2005, the Council on Ethics advised the Ministry of Finance to exclude companies that produce cluster munitions from the portfolio of the Government Pension Fund Global, and one of the companies to be excluded on these grounds was the US company L-3 Communications Holdings Inc. The Council regularly reviews the activities of excluded companies to establish whether the grounds for exclusion still apply. In this case it received information indicating that the company no longer produces components for cluster munitions, and the company has confirmed this. The Council therefore considers that the grounds for excluding L-3 Communications Holdings Inc. no longer apply.

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