Press release | No: 47/2019 | Date: 28/06/2019
The Ministry of Finance is requesting Norges Bank to assess how the phaseout of exploration and production companies from the Government Pension Fund Global (GPFG) should be executed.
On 12 June, the Storting endorsed the proposals in the report on Energy Stocks in the Government Pension Fund Global (GPFG), for omitting exploration and production companies in the energy sector from the GPFG to reduce overall oil price risk in the Norwegian economy. As part of its follow-up of the Storting’s deliberation of the report, the Ministry of Finance has today sent a letter to Norges Bank.
Exploration and production companies are for this purpose defined as the companies classified by the index provider FTSE Russell as belonging to subsector «0533 Exploration and Production». FTSE Russell has announced that the sector classifications will be changed. The Bank is therefore requested to assess which subsectors will encompass the exploration and production companies in the current subsector «0533 Exploration and Production» after 1 July 2019.
The Bank is also requested to recommend a time schedule for the phaseout.
The stipulated deadline is 13 September 2019, and the Ministry of Finance will thereafter revert with drafts for specific amendments to the provisions in the management mandate for the GPFG and establish a plan for the phaseout.
In the letter from the Ministry of Finance, Norges Bank is also requested to review and describe its efforts relating to climate risk in the GPFG. The stipulated deadline is 1 December 2019.
The Ministry of Finance has also sent the following letters (only available in Norwegian) to Norges Bank as part of its follow-up of the Storting’s deliberation of the report The Government Pension Fund 2019:
- Follow-up of the report Government Pension Fund 2019
- Changes in the provisions for the product-based coal-criteria in the Guidelines for Observation and Exclusion from the Government Pension Fund Global
- Proposed amendments to the management provisions for the Government Pension Fund Global, regarding the framework and benchmark index for the Fund’s fixed-income investments, environment-related investment mandates and investments in unlisted renewable energy infrastructure