The new proposals to change the ethical framework governing Norway’s Government Pension Fund Global could significantly weaken independent human rights oversight, reduce transparency and make it harder to exclude companies linked to serious abuses, Amnesty International said today.
Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, is reviewing its ethical governance framework. The Gjedrem Committee, set up for this purpose, has proposed weakening the independent Council on Ethics, allowing some of its assessments to remain confidential, and making it harder to exclude companies linked to serious human rights risks.
“The proposed ethical governance changes in the Norwegian fund risk weakening accountability and integrity and dismantling key human rights protections and amount to the most significant weakening of its human rights safeguards in two decades. When the world’s largest sovereign wealth fund changes its standards, the consequences do not stop at Norway’s borders. Other investors pay attention, and companies do too,” said John Peder Egenæs, Secretary General of Amnesty International Norway.
“Under the new proposals, the Council on Ethics would lose its ability to recommend exclusion, while some companies could remain in the portfolio despite serious human rights risks and failed engagement efforts. This risks weakening independent ethical scrutiny precisely when it is most needed and making certain investments too big to exclude. This is a dangerous approach and in practice imply that companies at risk of contributing to serious violations of international law are never excluded from the fund.”
When the world’s largest sovereign wealth fund changes its standards, the consequences do not stop at Norway’s borders. Other investors pay attention, and companies do too.
John Peder Egenæs, Secretary General of Amnesty International Norway
Greater discretion demands greater scrutiny
The new proposals recommend that the
… [more]
