Government Pension Fund – Global
Government Pension Fund – Global (the Fund) was established in 1990 by the Norwegian Ministry of Finance. The fund, managed by a branch of the Norwegian Central Bank (Norges Bank), is a fiscal policy tool to ensure that Norwegian state revenues from petroleum activities benefit present and future generations in Norway in an equal manner. It facilitates government savings in order to finance rising public pension expenditures on the long term.[i] As of the end of the first quarter 2016, the market value of the fund’s equity investments was approximately 4,317 billion kroner (€456 billion).[ii]
The Fund’s guidelines “establish that the fund assets shall not be invested in companies that, themselves or through entities they control[iii]: produce weapons that violate fundamental humanitarian principles through their normal use.” Government Pension Fund Global excludes producers and developers of nuclear weapons based on recommendations provided by the Council on Ethics. The Revised National Budget for 2004 provides a detailed list of weapons covered by the exclusion criteria, including nuclear weapons.[iv]
The Council on Ethics states that “dual use is, as a point of departure, not covered by the guidelines.”[v] As a result, Government Pension Fund – Global does not exclude companies producing weapon systems or key components that can be used both for conventional and for nuclear warfare. Also, the production of components specifically but not solely designed for the launching of nuclear missiles from submarines is not considered production of nuclear weapons by the Government Pension Fund – Global.[vi]
Government Pension Fund – Global’s nuclear weapons policy applies to all internal and external asset management activities carried out by the fund.[vii]
The exclusion list of Government Pension Fund – Global contains 12 companies associated with nuclear weapon production as of 28 June 2016: Aerojet Rocketdyne Holdings, Inc.; Airbus Group Finance B.V.; Airbus Group N.V.; Boeing Co.; BWX Technologies Inc; Honeywell International Inc.; Jacobs Engineering Group Inc.; Lockheed Martin Corp; Northrop Grumman Corp.; Orbital ATK Inc; Safran SA. and; Serco Group Plc.[viii] The external research provider used by the pension fund is DSR.[ix]
Government Pension Fund – Global was also found to have several investments in nuclear weapon producing companies identified by this report, more information can be found in the Hall of Shame.
We commend Government Pension Fund – Global for adopting a public policy on nuclear weapons. We recommend Government Pension Fund – Global apply its policy to all nuclear weapons producing companies including companies involved in any dual-use products used for nuclear warfare. We look forward to engaging with Government Pension Fund – Global, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
Government Pension Fund - Global has a leaky policy on nuclear weapons. Tell them to fix it!Read the petition
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Congratulations Government Pension Fund-Global. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.
However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because Government Pension Fund-Global also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.
It would be great if Government Pension Fund-Global made the following change to make the policy airtight:
• Apply the policy to all nuclear weapons producing companies including companies involved in any dual-use products used for nuclear warfare.
With kind regards,
[i] Norwegian Ministry of Finance, “Government Pension Fund Global (GPFG)”, website Norwegian Ministry of Finance (http://www.regjeringen.no/en/dep/fin/Selected-topics/the-government-pension-fund/government-pension-fund-global-gpfg.html?id=697027), viewed 29 October 2016.
[ii] Norges Bank, “Key Figures As At 30 September 2016”, website Norgest Bank (https://www.nbim.no/en/the-fund/market-value/key-figures/), viewed 10 October 2016.
[iii] This includes joint ventures.
[iv] Norwegian Ministry of Finance, “Ethical Guidelines for the Government Petroleum Fund”, 11 May 2004, website Norwegian Ministry of Finance (http://www.statsbudsjettet.no/Revidert-2004/English/?pid=49866#hopp), viewed 10 October 2016.
[v] Etikradet, “Recommendation of September 19, 2005, on the exclusion of companies that are involved in the production of nuclear weapons”, 19 September 2005, p. 3, website Ethical Council (http://etikkradet.no/?p=1313), viewed 10 October 2016.
[vi] Government Pension Fund Global, written response to PAX dated 11 May 2015; Etikradet, “Recommendation of September 19, 2005, on the exclusion of companies that are involved in the production of nuclear weapons”, 19 September 2005, p. 3, website Ethical Council (http://etikkradet.no/?p=1313), viewed 10 October 2016.
[vii] Government Pension Fund Global, written response to Profundo dated 30 April 2014.
[viii] Norwegian Ministry of Finance, “Exclusion of Companies”, website Norwegian Ministry of Finance (http://www.nbim.no/en/responsibility/exclusion-of-companies/), viewed 10 October 2016.
[ix] Government Pension Fund Global, written response to Profundo dated 30 April 2014.