Divestments based on ethical grounds reduce returns of Norway’s fund

Norges Bank HQ, Oslo
Norges Bank headquarters, Oslo
Espen Schive

The divestments implemented on ethical grounds by Norway’s sovereign wealth fund have reduced cumulative returns on equity by 1.6 percentage points since 2004, the managers of the fund said today (March 6).

In 2004, the Norwegian ministry of finance first introduced ethical guidelines to exclude companies from the investments of the Government Pension Fund Global, as the fund is officially called. These guidelines established two main sets of criteria.

One excludes product types. This

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