Government Pension Fund Global (GPFG) 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.[1] As of September 2017, the market value of the fund’s equity investments was approximately NOK 8162 billion (€80 billion).[2]
GPFG’s guidelines “establish that the fund assets shall not be invested in companies that, themselves or through entities they control[3]: 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.[4]
GPFG’s nuclear weapons policy applies to all internal and external asset management activities carried out by the fund.[5]
The exclusion list of Government Pension Fund Global contains 16 companies associated with nuclear weapon production as of January 2018: AECOM; Aeroject Rocketdyne Holdings; Airbus; Airbus Finance; BAE Systems; the Boeing Company; BWX Technologies; Fluor; Honeywell International; Huntington Ingalls Industries; Jacobs Engineering; Lockheed Martin; Northrop Grumman; Orbital ATK; Safran and Serco.[6] The fund also publishes all equity holdings online.[7] The external research provider used by the pension fund is ISS-Ethix.[8]
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.
Several shareholdings in nuclear weapon producers listed in this report hold Government Pension Fund – Global back from entering the Hall of Fame. We recommend GPFG divest from the remaining nuclear weapons associated companies in its portfolio, so that it may be listed in the Hall of Fame in a future update of this report.
Update:
January 2018: The Government Pension Fund Global added new companies to the nuclear weapons exclusion list for the first time since 2013. Read more.
Notes
[1] Norwegian Ministry of Finance, “Government Pension Fund Global (GPFG)”, website Norges Bank (http://www.regjeringen.no/en/dep/fin/Selected-topics/the-government-pension-fund/government-pension-fund-global-gpfg.html?id=697027), viewed 23 January 2018.
[2] Norges Bank, “Market Value”, website Norgest Bank (https://www.nbim.no/en/the-fund/market-value/), viewed 23 January 2018.
[3] This includes joint ventures.
[4] 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 23 January 2018.
[5] Council of Ethix, written response to Profundo dated 30 April 2014.
[6] Norwegian Ministry of Finance, “Exclusion of Companies”, website Norwegian Ministry of Finance (http://www.nbim.no/en/responsibility/exclusion-of-companies/), viewed 23 January 2018.
[7] Norwegian Ministry of Finance, “Holdings”, website Norwegian Ministry of Finance (https://www.nbim.no/en/the-fund/holdings/?fullsize=true), viewed 23 January 2018.
[8] Council of Ethix, written response to PAX dated 16 February 2018.
Last updated March 2018