Norway is Evaluating the Ethical Guidelines for the Pension Fund Global

- Socially responsible investments used to be a marginal issue for most investors. I believe we are now seeing the beginning of responsible investment becoming mainstream in the investor community, says the Norwegian Minister of Finance Mrs Kristin Halvorsen in her opening address at the conference “Investing for the Future” which takes place in Oslo January 16-17. 

200 leading representatives from the investor segment, international organizations, NGOs and academia are gathered in Oslo for the launch of the evaluation process of the Ethical Guidelines for the Norwegian Pension Fund – Global (PFG). 

- We are global investors. We are long term investors. We own a small part of the whole stock market. We are in every business. We believe social and environmental responsibility creates the best conditions for high, sustainable long-term returns. That is our business. And it is my hope that this conference and the forthcoming evaluation process of the ethical guidelines for the PFG may strengthen this trend and contribute to our joint efforts to take on corporate social responsibility, says the finance minister.

The Norwegian Government has decided to evaluate the Ethical Guidelines during 2008 to ensure that they function as intended.

- We deem it important to maintain the broad political support that the guidelines enjoy today. At the same time, we wish to receive any input that may contribute to the strengthening of the ethical profile of the Fund, states Minister Halvorsen.

The conference is hosted by the Norwegian Ministry of Finance in partnership with Norges Bank (the Central Bank) and the Council on Ethics. Norges Bank Investment Management is a separate part of the Norwegian central bank that manages the PFG assets. They also exercise the Fund’s ownership rights in line with the Ethical Guidelines.

Anne Kvam, the new Head of Corporate Governance for Norges Bank Investment Management (NBIM) outlines her ambitions for NBIMs work.

- For Norges Bank as an investor, ethics is a central part of corporate governance and the exercise of ownership rights. Hence, it is important to debate thoroughly and broadly how we can best utilise the overlap between ethics, corporate responsibility, and good returns. For that reason, this conference will be truly useful.

The Head of the Council of Ethics Mrs Gro Nystuen addresses the audience on the Council’s field of responsibility, exclusion of companies.

- Exclusion of companies based on ethical criteria is a difficult task. Input from research institutions, NGOs, journalists, government officials and other stakeholders is essential to us. This seminar is an opportunity for us to discuss our work with some of these stakeholders, says Nystuen.

HRH Crown Prince Haakon and the Norwegian Minister of Finance Kristin Halvorsen opened the conference. Heads of UN organisations such as George Kell of the UN Global Compact, Paul Clements-Hunt, Head of the UNEP Finance Initiative, Hilde Frafjord Johnson, Deputy Executive Director of UNICEF and other international organisations such as ILO will be contributing to the programme. Former UN general director, Jan Egeland (presently Director of the Norwegian Institute of International Affairs), and Hege Sjo, head of Nordic engagement and governance at Hermes Investment Management Ltd. Mr Espen Eckbo, Professor at the Tuck School of Business will also contribute to sessions and debates.

Background Information
The Norwegian Government Pension Fund - Global is one of the world’s largest single-owned funds (USD 300 billion). Ethical guidelines were introduced as part of the framework for the the management of the fund in 2004. With the awareness that international best practice is developing in this area, the Norwegian Government has decided to evaluate the guidelines to see whether they work as originally intended during the coming year.

See the web cast from the conference