A consultancy led by former Secretary of State Madeleine K. Albright will help to steer the ethical investment guidelines of one of the worlds most influential pension funds.
The Albright Group LLC, Washington, was hired to evaluate the effectiveness of current ethical practices of the 2.16 trillion Norwegian kroner ($387 billion) Norwegian Government Pension Fund-Global, Oslo., a leading voice among worldwide pension funds in socially responsible investments
The assessment (from the Albright Group) will be part of a broader evaluation of the ethical guidelines for the pension fund, said Trude Myklebust, special adviser in Norways Ministry of Finances asset management department.
The ministry may consider broader ethical guidelines to focus on some key strategies in order to be efficient, rather than scratching the surface of many issues, Minister of Finance Kristin Halvorsen said in a speech earlier this year.
The current approach is two-pronged: to exercise ownership rights and exclude companies due to activities that include nuclear weapons manufacturing, human rights violations and environmental degradation. Last month, the fund excluded GenCorp Inc., Serco Group PLC and Hanwha Corp. because of activities banned by the fund. Overall, the fund holds about 0.6% to 0.7% of more than 7,000 companies globally, according to data provided by the fund.
A report on the funds ethical guidelines is due for public comment by the end of summer.