Strategy Council to look at responsible investment practice in the Government Pension Fund

The Ministry of Finance has asked the Strategy Council for the Government Pension Fund Global (GPFG) to write a report on the strategy for responsible investment. The report will be presented autumn 2013. - Our ambition is that the management of the Government Pension Fund shall represent best practice for responsible investment. The Mandate given to the new Strategy Council is written with this in mind, says Finance Minister Sigbjørn Johnsen.

The purpose of the management of the GPFG is to secure a good long-term return, at a moderate level of risk. The objective of good financial return is closely linked to our ambition to be a responsible investor. A good financial return over time is dependent on sustainable development in economic, environmental and social terms. We will therefore utilise the tools available to us as a financial investor to promote this.

The Fund's strategy for responsible investments has been developed over time and currently encompasses several areas:

• International cooperation and contribution to the development of best practices
• Environmental related investment mandates
• Research and analysis
• Exercise of ownership rights
• Observation and exclusion of companies.

The work we do on responsible investment is continuously developing. We have built up valuable knowledge about this field both within the Council on Ethics, Norges Bank and the Ministry of Finance. The Strategy Council's report shall amongst other things consider how the collective resources and expertise can best be utilised to strengthen the work on responsible investment further. The report may propose changes to strengthen the work on responsible investment, including operational and institutional changes.

- Independent, expert advice is an important part of our efforts to develop the fund management further. Such advice contributes to transparency and debate about important decisions, says Finance Minister Sigbjørn Johnsen.

According to the mandate, the main focus of the Strategy Council's report shall be on the Fund's overarching strategy for responsible investment. The report shall build on the experience of the work so far and comparisons with other funds. The Council shall evaluate how any gaps between the Fund strategy and international best practice for responsible investment can be closed. The report shall not give an evaluation of Norges Bank's operational management of the GPFG or the Council on Ethics' recommendations on observations and exclusions.

The Strategy Council 2013 consists of five members. Elroy Dimson (London Business School and Cambridge Judge Business School) will lead the Council's work and has extensive Strategy Council experience. Dimson is an internationally recognised finance professor, and his areas of research include responsible investments. The other members of the Council are Idar Kreutzer, Rob Lake, Hege Sjo and Laura Starks. The Council will also consult other experts within responsible investment, including Pavan Sukhdev.