This translation is for informational purposes only. Legal authenticity remains with the original Norwegian version, Midlertidige etiske retningslinjer for Statens pensjonsfond utland, as published at lovdata.no.

I. Purpose and scope

Section 1. Purpose

The purpose of these Interim guidelines for the Government Pension Fund Global (GPFG) is to identify companies that cause or contribute to serious violations of fundamental ethical norms as set out in sections 3 and 4 of these Guidelines, with an aim to potentially inform ownership activities by Norges Bank.

Section 2. Scope

These Guidelines apply to the work of the Council on Ethics for the Government Pension Fund Global (the Council on Ethics) and Norges Bank (the Bank) for the purpose of identifying companies in the Government Pension Fund Global's (the Fund) equity and fixed-income portfolios for potential ownership activities.

II. Criteria for identifying companies for potential ownership activities

Section 3. Product-based criteria

(1) Companies shall be identified for potential ownership activities based on whether the company itself or through entities they control:

  1. develop or produce weapons or key components for weapons that, in normal use, violate fundamental humanitarian principles, including biological weapons, chemical weapons, nuclear weapons, non-detectable fragments, incendiary weapons, blinding laser weapons, anti-personnel mines, and cluster munitions
  2. produce tobacco or tobacco-products
  3. produce cannabis for recreational use

(2) Mining companies and power producers shall be identified for potential ownership activities based on whether they themselves, or consolidated through the entities they control, either:

  1. derive 30 per cent or more of their income from thermal coal,
  2. base 30 per cent or more of their operations on thermal coal,
  3. extract more than 20 million tonnes of thermal coal per year, or
  4. have the capacity to generate more than 10,000 MW of electricity from thermal coal.

Section 4. Conduct-based criteria

Companies shall be identified for potential ownership activities based on whether there is an unacceptable risk that the company contributes to or is responsible for:

  1. serious or systematic human rights violations
  2. serious violations of the rights of individuals in situations of war or conflict
  3. the sale of weapons to states engaged in armed conflict that use the weapons in ways that constitute serious and systematic violations of the international rules on the conduct of hostilities
  4. the sale of weapons or military materiel to states that are subject to investment restrictions on government bonds as described in section 2-1 second paragraph litra c of the Management mandate for the Government Pension Fund Global
  5. severe environmental damage
  6. acts or omissions that on an aggregate company level lead to unacceptable greenhouse gas emissions
  7. gross corruption or other serious financial crime
  8. other particularly serious violations of fundamental ethical norms.

III. Organisation of the Work

Section 5. The Council on Ethics' work

(1) The Council on Ethics informs the Bank about companies in the GPFG’s portfolio that have been identified for potential ownership activities, in accordance with the criteria set out in sections 3 and 4. The Council on Ethics provides recommendations on the revocation of observation and exclusion decisions, see fifth paragraph and section 6 third paragraph.

(2) The Council on Ethics monitors the GPFG’s investments, see section 2, for the purpose of identifying companies that contribute to or are themselves responsible for the products or conducts set out in sections 3 and 4.

(3) The Council on Ethics takes up cases at its own initiative or at the request of the Bank. The Council on Ethics shall develop and publish principles for the selection of companies for closer investigation.

(4) The Council on Ethics shall, at its full discretion, gather the information it deems necessary and shall ensure that each matter is thoroughly investigated, providing the Bank with complete and accurate information.

(5) The Council on Ethics shall have routines for assessing whether the basis for decisions on observation or exclusion still exists in cases where the Bank has made such decisions. In light of new information, the Council on Ethics may recommend that the Bank revoke an observation or exclusion decision. These routines must be made public. Companies that have been excluded must be informed of these routines separately.

Section 6. Norges Bank's work

(1) The Bank shall assess information about companies it receives from the Council on Ethics pursuant to section 5 first paragraph as part of the Bank's ownership activities.

(2) The Bank may, following recommendations from the Council on Ethics in accordance with section 5 first and fifth paragraphs make decisions to revoke an observation or exclusion decision. In assessments pursuant to section 3 second paragraph, importance shall also be attached to forward looking assessments, including any plans the company may have that will change the level of extraction of coal or coal power capacity relating to thermal coal, reduce the income ratio or business share based on thermal coal and/or increase the income ratio or business share relating to renewable energy sources.

(3) On the basis of new information, the Bank may ask the Council on Ethics to assess whether the grounds for observation or exclusion continue to exist.

Section 7. Exchange of information and coordination between the Bank and the Council on Ethics

(1) To facilitate good coordination between the Bank and the Council on Ethics, the Bank and the Council shall hold regular meetings.

(2) The Council on Ethics shall inform the Bank about companies it has identified for initial assessments under these Guidelines. The Bank shall inform the Council on Ethics about companies with which it is working and company information that could be relevant to the Council on Ethics' assessments.

(3) The Council on Ethics may ask the Bank for information on matters concerning individual companies, including how specific companies are dealt with in the context of the exercise of ownership rights. The Council on Ethics may ask the Bank to contact companies with which the Council is unable to establish contact for the purpose of soliciting information. The Bank may ask the Council on Ethics to make its assessments of individual companies available to it and to be informed on the Council’s communications with the companies concerned.

(4) The Bank and the Council on Ethics shall establish detailed procedures for the exchange of information and coordination to clarify responsibilities and promote productive communication and integration of the work of the Bank and the Council on Ethics.

(5) Communication with the companies shall be coordinated. The Bank may attend meetings that the Council on Ethics has with companies. The Bank exercises the GPFG’s shareholder rights, see Management mandate for the Government Pension Fund Global.

Section 8. The Council on Ethics' composition and organisation

(1) The Council on Ethics consists of five members based on nomination by the Bank and appointed by the Ministry of Finance. The Ministry also appoints a chair and deputy chair based on nomination by the Bank. The Bank’s nominations shall be submitted to the Ministry no later than three months prior to the expiry of the appointment period.

(2) The Council on Ethics performs its work independently and autonomously. The Council on Ethics’ composition must ensure that it possesses the required expertise to perform its functions as defined in these guidelines.

(3) Members of the Council on Ethics shall be appointed for a period of four years. If a Council member steps down during their period of appointment, a new member may be appointed before the remaining portion of the period has expired.

(4) The Ministry sets the remuneration payable to the members of the Council on Ethics and the Council on Ethics’ budget.

(5) The Council on Ethics has its own secretariat, which falls administratively under the Ministry’s purview. The Council on Ethics shall ensure that the secretariat has appropriate procedures and routines in place

(6) The Council on Ethics shall prepare an annual operating plan, which shall be submitted to the Ministry. The operating plan shall describe the priorities set by the Council on Ethics for its work, see section 5.

(7) The Council on Ethics shall provide the Ministry with an annual report on its activities. This report shall be submitted no later than three months after the end of each calendar year.

(8) The Council on Ethics shall evaluate its work regularly.

Section 9. Meetings with the Ministry of Finance

(1) The Ministry, the Bank and the Council on Ethics shall meet at least once a year. The report on responsible investment management included in the annual report to the Norwegian parliament (Stortinget) on the management of the GPFG shall be based in part on the information exchanged at such meetings.

(2) The Ministry and the Council on Ethics shall meet at least once a year. The following matters shall be discussed at these meetings:

  1. activities in the preceding year
  2. other matters reported by the Ministry and the Council on Ethics for further consideration.

IV. Public disclosure

Section 10. Publication

(1) The Bank shall publish its decisions on the revocation of observation and exclusion in connection with its semi-annual and annual reporting, see the Mandate for the management of the Government Pension Fund Global, section 6-1 fifth paragraph. The Council on Ethics shall simultaneously publish its recommendations on the revocation of observation and exclusion.

(2) The Bank shall keep a publicly available list of companies that are excluded from the GPFG or are placed under observation.

V. Other provisions

Section 11. Power of amendment

The Ministry may make additions to or changes in these Guidelines.

Section 12. Transitional provision

(1) Annual reporting for the period 1 January 2025 to 6 November 2025 shall be done in accordance with the requirements for annual reporting as stated in the Guidelines of 18 December 2014 for observation and exclusion of companies from the Government Pension Fund Global as they read 6 November 2025.

(2) Norges Bank's annual reporting for the period 1 January 2025 to 6 November 2025 shall be done in accordance with the requirements for annual reporting as stated in the Mandate of 8 November 2010 for the management of the Government Pension Fund Global, section 6-1 fifth paragraph as they read 6 November 2025.

Section 13. Entry into force

(1) The Guidelines enter into force immediately.

(2) From that same date, the Guidelines for Observation and Exclusion from the Government Pension Fund Global (GPFG) adopted on 18 December 2014 are repealed.