New decisions about the Government Pension Fund Global

Three companies have been re-included and two companies have been excluded from the investment universe of the Government Pension Fund Global (GPFG).

The Ministry of Finance has decided to lift the exclusion from the GPFG of the three companies BAE Systems Plc, Finmeccanica S.p.A and FMC Corporation. The Ministry has also decided to exclude the two companies The Babcock & Wilcox Co. and Jacobs Engineering Group Plc. from the GPFG. The decisions have already been implemented.

Two weapons manufacturers excluded
The Council on Ethics has recommended to the Ministry of Finance that two companies involved in the production of nuclear weapons be excluded (see section 2.1 of the Guidelines for the Observation and Exclusion of Companies from the Government Pension Fund Global's Investment Universe).

The Babcock & Wilcox Co. operates and has operational responsibility for state-owned plants that produce fissionable material for nuclear warheads, and maintains and upgrades such warheads. Jacobs Engineering Group Inc. has stated that it is now participating in a joint venture company engaged in the development, production, testing and maintenance of nuclear warheads.

Based on the recommendation of the Council on Ethics, the Ministry of Finance has excluded the two companies from the GPFG's investment universe.

Three companies re-included
BAE Systems Plc. and Finmeccanica S.p.A were excluded due to their involvement in the production of nuclear weapons. The companies have informed the Council on Ethics that the production of the ASMP-A nuclear missile by their joint venture company MBDA has ceased. The Council on Ethics has therefore recommended that the exclusion be lifted, and the Ministry of Finance has decided to do so.

FMC Corporation was excluded in 2011 because of its purchase of phosphate from Western Sahara. FMC Corporation has informed the Council on Ethics that the company no longer purchases phosphate from Western Sahara, and that it has no plans to do so in future. The Ministry of Finance has therefore lifted the exclusion of FMC Corporation based on a recommendation of the Council.

Read more:

• Recommendations on BAE Systems Plc. and Finmeccanica S.p.A
• Recommendations on FMC Corporation
• Recommendations on the Babcock & Wilcox Co. and Jacobs Engineering Group Inc.
• The Council on Ethics for the Government Pension Fund Global
• List of companies excluded from the GPFG's investment universe