Ethical watchdogs fired
Caring Company was hired this spring to go through Oljefondets shareholdings in order to identify the companies that breach ethical guidelines.
Caring Company presented the rapport in June and suggested that three companies should be excluded from the share portfolio, and that several others should be observed.
The report was killed by Oljefondet's Folkerettsråd, the funds committee for human rights, and two of the three companies were included all the same. The report was criticized because of lack of documentation, and because the method used was not fit for the task, and finally, the fact that the unfit method was not applied correctly.
Folkerettsrådet was very critical to the report because it claimed, among other things, that the method used by Caring Company was not fit to reveal breaches of international requirements. Furthermore, it was claimed that not all of the statements in report were documented properly, and because of this, the Department of Finance decided to end their contract with Caring Company, Anders Lande, information officer at the finance department stated to TV 2 Nettavisen.
Unfit to make ethical investments
Caring Company claims that Oljefondet had unrealistic expectations to the report. According to CEO Magnus Furugård, the Oil Fund had a particularly unfit starting point to make in ethical investments.
Oljefondet is tied by its own rules. They are at all times required to follow the legal conventions and it therefore has little room to evaluate if the investment in ethical or not, Furugård said to TV 2 Nettavisen.
Made list for KLP
Caring Company was hired in by KLP, the company managing the pension funds for local government employees in Norway, to make a list over the worse ethical actors on the market, and the company has done the same project for two other large Norwegian clients, Nordea and SEB. In 2001/2002, the Norwegian Oil Fund owned stock in 25 of the 27 companies on KLPs list of worse ethical actors.
You can say it like this, the companies that KLP is removing from their investment portfolios are not very radical. It is based on extensive evaluations, and it is done in order to remove the worst ethical companies from the portfolios. Oljefondet should do that too, Furugård said.
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