Norwegian fund excludes further company on ethical grounds
3 September 2009
Norway’s Government Pension Fund – Global
has excluded an Israeli company from its portfolio, on the basis of the
Council on Ethic’s recommendation.
The Council found that Elbit Systems Ltd, a supplier of surveillance equipment,
provides products to the Israeli authorities, and is one of the main components
in the separation barrier and its associated control regime. The Council
of Ethics ruled that investment in Elbit constitutes ‘an unacceptable
risk of contribution to serious violations of fundamental ethical norms
as a result of the company’s integral involvement in Israel’s
construction of a separation barrier on occupied territory’.
Kristin Halvorsen, Minister of Finance, said: “We do not wish to
fund companies that so directly contribute to violations of international
humanitarian law.”
The decision was made by the Council of Ethics on the grounds of an advisory
opinion from the International Court of Justice in The Hague, dating from
2004, which states that the construction of the separation barrier and
its associated control regime along the chosen route should be regarded
as in contravention of international law.
“The freedom of movement of the people living in the occupied territory
has been unacceptably restricted. The International Court of Justice has
pointed out the obligation of all State parties to the Fourth Geneva Convention
to prevent breaches of the Convention such as the construction of the
barrier. Norwegian authorities act in accordance with this,” added
Halvorsen.
However, the Government Pension Fund – Global has reinstated two
companies to its portfolio.
The Ministry of Finance decided to reverse decision to include Thales
SA and DRD Gold Limited from its investment portfolio in 2005 and 2007
respectively. Thales SA was excluded as the company was involved in the
manufacture of cluster munitions, which the Council of Ethic’s guidelines
prohibit. DRD Gold Limited was excluded on the grounds of severe environmental
damages, arising from the fact that one of its subsidiaries was involved
in gold mining in Papua New Guinea. Waste from the mine was deposited
into a natural river system.
The Council on Ethics found that the grounds for exclusion are no longer
valid, and the Ministry of Finance has followed the recommendation of
reinstatement.
The Council on Ethics’ recommendations to the Government Pension
Fund – Global can be viewed here.
