NORWAY - Norway's Government Pension Fund Global has shed its NOK13.7bn (US$2.4bn) investment in 17 tobacco producing companies including Philip Morris and British American Tobacco.
The Norwegian Ministry of Finance said it made the decision to divest based on recommendations it received from the Council on Ethics, new government frameworks and a World Health Organisation treaty regarding tobacco.
The Ministry of Finance said: "In drafting a new criterion on screening tobacco producers, the Ministry of Finance placed particular emphasis on finding a delimitation that fits well with the structure of the current ethical guidelines, including existing rules for negative screening of certain weapons manufacturers.
"On this basis, a rule has been adopted that in principle will exclude all production of tobacco, regardless of the percentage of business represented by tobacco production."
Negative screening, or excluding companies from a portfolio based on certain criteria is common practice among pension funds around the world.
In 2008, for example, Sweden's AP funds 1-4 excluded nine companies involved in the sale of cluster bombs. (Global Pensions; September 15, 2008)
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.